Question

4-21 (Algo) Reporting an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO4-2 Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Debit Credit Cash 18 Accounts receivable 15 Prepaid insurance 10 Machinery 77 Accumulated depreciation Accounts payable 11 Wages payable Income taxes payable Common stock (8,000 shares) 8 Additional paid-in capital 57 Retained earnings 9 Revenues (not detailed) 78 Expenses (not detailed) 25 Totals 154 154 Other data not yet recorded at December 31 include

Answer 1

Answer:

Income statement

revenue         78000

expenses  (25000 )

insurance  (7000 )

depreciation  (9000 )

EBIT          37000

TAX                  (11000)

net income  26000

EPS                    3.25

STATEMENT OF STOCKHOLDER'S EQUITY

  Common stock  retained earnings  additional paid in capital  

opening  8000                   9000                57000  

net income                     26000    

closing  8000                    35000                  57000

BALANCE SHEET  

assets    

non current assets   154000

machinery           77000

accum depreciation  (20000)

carrying value   57000

current assets   36000

prepaid insurance   3000

cash                   18000

accounts receivables  15000

   

total assets            190000

Equity and liabilities    

stockholdr's equity  100000

common stock   8000

Retaine earnings   35000

paid in capital           57000

   

Liabilities           90000

current liabilities   90000

Accounts payable   11000

wagages payable   4000

income tax payable  75000   balancing figure

Explanation:

missing information;

Other data not yet recorded at December 31 include:

Insurance expired during the current year, $7.

Wages payable, $4.

Depreciation expense for the current year, $9.

Income tax expense, $11.

Required:

1. Using the adjusted balances, prepare an income statement for the current year. (Round "Earnings per share" to 2 decimal places. Enter your answers in thousands.)

2. Using the adjusted balances, prepare statement of stockholders’ equity for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

3. Using the adjusted balances, prepare balance sheet for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)