accounting project

Brooklyn College of the City University of New York Accounting Department

Intermediate Financial Accounting II Professor G. Vasquez

Spring 2012

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Balance Sheet Project Account balances at 12/31/2010: Debit Credit Cash $50,000 Accounts Receivable, net 38,500 Inventories 65,300 Equipment, net 104,000 Patents 20,000 Notes and Accounts Payable $52,000 Long-term Liabilities 100,000 Stockholders’ Equity 125,800 $277,800 $277,800

Except for the following items, all adjustments have been recorded in the accounts. 1. Cash includes $200 petty cash and $20,000 in a fund designated for plant expansion in 2012. 2. The net accounts receivable is comprised of: (a) accounts receivable $52,000, and (b) allowance for doubtful

accounts $13,500. 3. Equipment had a cost of $132,000 and accumulated depreciation of $28,000. 4. Notes and Accounts Payable is comprised of the following: Accounts Payable $32,000; Taxes Payable $3,000;

Note Payable $17,000, due June 30, 2012. 5. Long-term liabilities are 10-year bonds paying interest at 9% maturing June 30, 2021. 6. Stockholders’ Equity is comprised of: Common Stock ($1 par) $50,000; Additional Paid-in Capital $55,000; and

Retained Earnings of $20,800. Additional Information: 1. Name of Firm: FMB Inc. 2. Headquarters: Taos, New Mexico 3. Business: Manufactures computer chips 4. Operating Year: Calendar Year (2011) 5. Sales $210,000; EBIT $14,000; MV of Equity $225,000. Requirements: (1) Prepare classified balance sheet (to be audited) and notes (if necessary).

Good luck! 

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