Prepare the income statement and balance sheet, Financial Accounting

Assignment Help:

Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011.  Previous period's information were as follows: net receivables, $290,000 and inventory, $82,000.  Total revenues were $350,000 for 2010, 360,000 for 2009, and 295,000 for 2008.

Requirements:

1)  Prepare the income statement, statement of retained earnings, and balance sheet.

2) Calculate the following ratios: current ratio, quick ratio, debt ratio, accounts receivable turnover, and inventory turnover.  Briefly explain your answers.

3)  Calculate the vertical analysis for total current assets.

4)  Calculate the horizontal analysis on total revenues from 2008 thru 2011.

Cash                                                                        198,000

Accounts receivable                                                    300,000

Inventories                                                                 78,000

Prepaid insurance expense                                            4,000

Supplies                                                                      2,000

Furnitures                                                                 100,000

Accumulated depreciation, furnitures                              60,000

Building                                                                      250,000

Accumulated depreciation, building                                140,000

Accounts payable                                                        310,000

Salaries payable                                                           5,000

Unearned service revenue                                           13,000

Notes payable ($12,000 due in the current year)            40,000

Mortgage payable (1/3 is due in the current year)          30,000

Retained earnings                                                    293,000

Dividends                                                                   65000

Service revenue                                                           300,000

Professional fees revenue                                            30,000

Salary expense                                                            170,000

Supplies expense                                                         4,000

Depreciation expense, furnitures                                20,000

Depreciation expense, building                                   11,000

Rent expense                                                               9,000

Interest expense                                                          7,000

Utilities expense                                                          3,000


Related Discussions:- Prepare the income statement and balance sheet

Dissolutions, DISSOLUTIONS A partnership may be dissolved due to variou...

DISSOLUTIONS A partnership may be dissolved due to various reasons which include: Poor trading that has led to losses A partner dying or leaving the firm The time

business strategy-vertical horizontal or conglomerate , What was the busin...

What was the business strategy underlying the merger? How was the acquisition financed? Was it a vertical, horizontal or conglomerate merger?   The strategy behind those merge

Asset, assets&what are the different type of asset

assets&what are the different type of asset

Example of abc analysis, Illustration: Dinesh Limited is looking selective...

Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan. Items                 A           B

Illustration: computation of retained profits acquisition, Illustration: Co...

Illustration: Computation of retained profits acquisition Normal 0 false false false EN-US X-NONE X-NONE MicrosoftIn

Internal revenue service (irs), Explain:- Q.1 Explain the ways in which...

Explain:- Q.1 Explain the ways in which the needs of internal and external users of accounting information are the same and different. Q.2 Why is it important for financial sta

How do you react to the investment banker?, You are the CFO of Diversi?ed I...

You are the CFO of Diversi?ed Industries. Diversi?ed has suffered through 4 or 5 tough years. This has deteriorated its ? financial condition to the point that Diversi?ed is in dan

Khyber bank, how we write a literature review

how we write a literature review

Bell mountain vineyards is considering updating, Bell Mountain Vineyards is...

Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company mon

Application for grant-court jurisdiction, Court jurisdiction A court ma...

Court jurisdiction A court may limit a grant of representation which it has jurisdiction to make, as follows: 1. Where the will has been lost or mislaid since the testator's

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd