Question

Barth Company reports the following year-end account balances at December 31, 2011. Prepare the 2011 income statement and the balance sheet as of December 31, 2011. Accounts payable $ 32,000 Inventory $ 72,000 Accounts receivable 60,000 Land 160,000 Bonds payable, long-term 400,000 Goodwill 16,000 Buildings 302,000 Retained earnings 120,000 Cash 96,000 Sales revenue 800,000 Common stock 300,000 Supplies inventory 6,000 Cost of goods sold 360,000 Supplies expense 12,000 Equipment 140,000 Wages expense 80,000

Answer 1

Answer:

Income Statement

Sales Revenue          $800,000

Cost of goods sold   $360,000

Supplies expense     $12,000

Wages expense        $80,000

Net Income                $348,000

Retained Earnings    $120,000

Dividends to be Paid $228,000

Balance Sheet

Assets

Cash                              $96,000

Supplies inventory       $6,000

Inventory                       $72,000

Accounts Receivable   $60,000

Goodwill                        $16,000

Land                              $160,000

Buildings                       $302,000

Equipment                    $140,000

Total Assets                  $852,000

Liabilities

Accounts payable         $32,000

Bonds Payable              $400,000

Total Liabilities              $432,000

Stockholder's Equity

Common Stock             $300,000

Retained Earnings        $120,000

Total Stockholder's

Equity                             $420,000

Total Liabilities and

Equity                             $852,000