Reference no: EM13567702

To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various sub groupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles and Other Assets. As well as Current Liabilities, Long-term Liabilities and the Equity sections).Guidelines

• Determine which accounts belong to the Balance Sheet and which accounts belong to the Income Statement
• Determine to which sub-group each account belongs
• Arrange the accounts in proper order and functionality
• Prepare a Comprehensive Balance Sheet in good form
• Prepare a Single-step Income Statement in good form

Accounts

Accounts Payable                                              $197,532

Account Receivable                                            165,824

Accrued Interest on Notes Payable                         500

Accrued Liabilities                                                 9,500

Accumulated Depreciations                               341,200

Additional Paid-in Capital                                    37,500

Administrative Expenses                                   350,000

Allowance for doubtful accounts                           1,850

Building                                                             975,800

Cash                                                                   42,485

Common Stock                                                  400,000

Copyrights                                                        105,000

Cost of Goods Sold                                         1,000,000

Customer Deposits    (expected to be paid next year)    420

Deposits with Vendors (based on a long-term purchase contract)   50,000

Depreciation Expense            (40% - Selling,

60% - Administrative)                                       100,000

Dividend Income                                                 30,000

Goodwill                                                             100,000

Income Tax Expense                                          82,250

Income Taxes Payable                                        62,520

Interest Revenue                                                25,000

Inventories                                                       499,493

Investments in Warren Co.                                 87,500

Land                                                                  125,000

Mortgage Payable ($1,500 per month)            308,000

Notes Payable to Banks                                     50,000

Notes Receivable (due next year)                      23,000

Patents                                                            125,000

Preferred Stock, 7%                                        300,000

Prepaid Expenses                                             16,252

Rental Income                                                   50,000

Retained Earnings                                          162,582

Selling Expenses                                            300,000

Salaries Payable                                              52,000

Sales Discounts                                             120,000

Sales Revenue                                              2,000,000

Securities (available for sale) - at fair

            Market value                                       28,250

Trademarks                                                     80,000

Twenty-year, 12% Bonds, due 1/1/2013       500,000