Preparing Financial Statement

Only available on StudyMode
  • Download(s) : 207
  • Published : March 20, 2013
Open Document
Text Preview
Prepare a Set of Financial Statements
Samson Company adjusted account balances as of December 31, 2005 are as follows (some noted balances are Jan. 1, 2005):

Sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000
Purchases . . . . . . . . . . . . . . . . . . . . . . 810,000
Marketable securities . . . . . . . . . . . . . . . . 15,000
Purchase discounts . . . . . . . . . . . . . . . . . 20,000
Purchase returns and allowances . . . . . . . . . . . 2,000
Extraordinary loss due to earthquake, net of
applicable taxes of $15,000. . . . . . . . . . . . 35,000
Selling expenses . . . . . . . . . . . . . . . . . . 114,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Accounts receivable . . . . . . . . . . . . . . . . . 60,000
Common stock . . . . . . . . . . . . . . . . . . . . 150,000
Accumulated depreciation . . . . . . . . . . . . . . 42,000
Paid-in-capital in excess of par . . . . . . . . . . 30,000
Inventory, January 1, 2005 . . . . . . . . . . . . . 149,000
Inventory, December 31, 2005 . . . . . . . . . . . . 120,000
Accounts payable . . . . . . . . . . . . . . . . . . 71,000
Salaries payable . . . . . . . . . . . . . . . . . . 5,000
Cash surrender value of life insurance . . . . . . . 22,000
Patents . . . . . . . . . . . . . . . . . . . . . . . 18,000
Retained earnings, January 1, 2005 . . . . . . . . . 60,600
Interest expense . . . . . . . . . . . . . . . . . . 13,000
General and administrative expenses . . . . . . . . . 160,000
Dividend revenue. . . . . . . . . . . . . . . . . . . 6,000
Allowance for doubtful accounts . . . . . . . . . . . 3,000
Notes payable (maturity 7/1/07) . . . . . . . . . . . 105,000
Machinery and equipment . . . . . . . . . . . . . . . 150,000
Income tax expense . . . . . . . . . . . . . . . . . 30,600
Treasury stock . . . . . . . . . . . . . . . . . . . 10,000
Dividends declared and paid . . . . . . . . . . . . . 18,000

Prepare multi-step income statement:

Samson Company
Income Statement
For the Year Ended December 31, 2005

Sales $1,200,000

Cost of Goods Sold:

Beginning inventory $149,000
Purchases $810,000
Purchase discounts ( 20,000)
Purchase returns and
allowances ( 2,000)
-------
Net purchases 788,000
-------
Goods available for sale 937,000
Ending inventory 120,000
-------
Cost of goods sold 817,000...
tracking img