ACC 556 WEEK 1 DISCUSSION

ACC 556 WEEK 1 DISCUSSION

"Financial Statements"  Please respond to the following.

• 4 

• 5 

We will be using our Discussions to work together on an exercise or problem similar to those in the textbook. Using the information for Harrison and Beneto below, prepare an income statement, statement of retained earnings, and balance sheet for the fiscal year 2017. In addition to presenting the statements also answer one of the question in the Decision Tools Review on page 20 in our textbook and also available through the link below. 

Use the numbers provided for Harrison and Beneto Inc. in answering the questions. This is very basic, but there is sufficient information to demonstrate your knowledge. That is your goal. You want to show your understanding of the numbers. You want to elaborate on your answer adding detail and description that shows "thoughtful analysis and provides valuable insight into the topic. ... thoroughly addresses all elements" . Be sure to review the rubric and compare your posts to the descriptions of the grading categories. 

NOTICE THE ADDITIONAL NUMBERS IN THIS DISCUSSION. Total Assets should be $445,555.

 

The following items and amounts were taken from Harrison and Beneto Inc’s 2017 income statement and balance sheet.

Cash                     $  84,700                                         Inventory             $  64,618

Retained earnings            123,192                              Accounts receivable        88,419

Cost of goods sold           483,854                              Sales revenue     693,485

Salaries and wages expense         125,000               Income taxes payable     6,499

Prepaid insurance            7,818                                   Accounts payable             49,384

Interest expense              994                                      Service revenue                8,998

Dividends                        300                                      Common Stock              266,480

Property, Plant & Equip  200,000

 Hint: The Retained earnings balance is as of the end of 2017, which includes the net income and dividends paid for 2017. Cost of goods sold is an expense.

NOTE: MORE THAN ONE VERSION POSTED AS A BONUS CHOOSE ANY