Accounting Financial Statements

Week_4_financial_statements.xlsx

Trial Balance - Current Year

Smith Manufacturing, Inc.
Trial Balance
December 31, 20XX
	DR	CR
Cash	362,750
Accounts receivable	320,750
Allowance for uncollectible accounts		15,000
Prepaid insurance	10,000
Inventory	30,000
Land	50,000
Building	150,000
Accumulated depreciation-building		7,500
Equipment	500,000
Accumulated depreciation-equipment		50,000
Accounts payable		105,000
Note payable (due in 10 months, 5%)		125,000
Salaries payable
Interest payable
Note payable (due in 5 years, 3%)		500,000
Common Stock (3,000 shares outstanding)		300,000
Retained earnings		171,000
Sales revenue		850,000
Cost of goods sold	550,000
Salaries expense	150,000
Insurance expense
Depreciation expense
Interest expense
Bad debt expense
Totals	2,123,500	2,123,500

Smith Manufacturing, Inc.
Post-Closing Trial Balance
December 31, 20XX
	DR	CR
Cash	15,000
Accounts receivable	225,750
Allowance for uncollectible accounts		20,000
Prepaid insurance	5,000
Inventory	80,000
Land	50,000
Building	150,000
Accumulated depreciation-building		7,500
Equipment	500,000
Accumulated depreciation-equipment		50,000
Accounts payable		55,000
Note payable		50,000
Salaries payable		5,000
Interest payable		17,250
Note payable (due in 5 years, 3%)		350,000
Common Stock (3,000 shares outstanding)		300,000
Retained earnings		171,000
Sales revenue
Cost of goods sold
Salaries expense
Insurance expense
Depreciation expense
Interest expense
Bad debt expense
Totals	1,025,750	1,025,750

Smith Manufacturing, Inc.
Statement of Cash Flows
For Year Ending Dec 31, 20XX
Retained Earnings		$ 68,750
Non Cash Expenses (+)
Depreciation	57,500
Interest expense	21,250
Net profit before working capital changes		$ 147,500
Inventory	40,000
Accounts payable	50,000
Short term notes payable	75,000
Interest Payable	4,000
less Accounts Receivable	(91,500)
Prepaid Insurance	(3,000)
Salaries payable	(3,000)
Cash from Operating Activities- A		$ 219,000
Cash from Investing Activities- B
Long term Notes payable	150,000
Less Interest expense	(21,250)
Cash from Financing Activities- C		$ 128,750
Cash Balance		$ 347,750
Add Opening Balance of Cash		15,000
Closing Balance of cash		$ 362,750

Smith Manufacturing, Inc.
Multiple-step Income Statement
For Year Ending Dec 31, 20XX
Sales Revenue		$ 850,000
less Cost of Goods Sold	(540,000)
Gross profit		$ 310,000
Less expenses:
Salaries expense	152,000
Insurance expense	2,000
Depreciation expense	57,500
Bad Debts expense	8,500
Total expenses		$ 220,000
Net Income		$ 90,000
less Interest expense	21,250
Net Income		$ 68,750

Smith Manufacturing, Inc.
Multiple-step Income Statement
For Year Ending Dec 31, 20XX
Assets	Prior YR	Current YR
Cash	$ 15,000	$ 362,750
Accounts receivable	225,750	320,750
Less Allowance for doubtful Debts	(20,000)	(23,500)
Net Accounts Receivable	205,750	297,250
Prepaid Insurance	5,000	8,000
Inventory	80,000	40,000
Total Current Assets	$ 305,750	$ 708,000
Land	$ 50,000	$ 50,000
Building	150,000	150,000
Less Accumulated Depreciation on Building	(7,500)	(15,000)
Net Building	142,500	135,000
Equipment	500,000	500,000
Less Accumulated Depreciation on Equipment	(50,000)	(100,000)
Net Equipment	450,000	400,000
Total Fixed Assets	642,500	585,000
Total Assets	$ 948,250	$ 1,293,000
Current Liabilities
Accounts payable	$ 55,000	$ 105,000
Notes Payable (Short term )	50,000	125,000
Salaries Payable	5,000	2,000
Interest Payable	17,250	21,250
Total Current Liabilities	127,250	253,250
Notes Payable (long term )	350,000	500,000
Total Long term Liabilities	350,000	500,000
Common stock	300,000	300,000
Retained Earnings	171,000	239,750
Total Liabilities and Equity	$ 948,250	$ 1,293,000