Preparing Financial Statement

Prepare a Set of Financial program lines Samson fraternity adjusted account balances as of celestial latitude 31, 2005 are as follows (some noted balances are Jan. 1, 2005) gross sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000 Purchases . . . . . . . . . . . . . . . . . . . . . . 810,000 vendible 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 origin . . . . . . . . . . . . . . . . . . . . 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 say 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 determination inventory 120,000 -Cost of goods sold 817,000 Gross profit 383,000 Operating expenses Selling expenses 114,000 General and administrative expenses 160,000 - follow operational expenses 274,000 Operating income 109,000 opposite income (expense) Dividend revenue 6,000 Interest expense ( 13,000) - Total other income (expense) ( 7,000) Income before income taxes 102,000Income taxes 30,600 Income before curious item 71,400 Extraordinary loss due to earthquake, net of applicable taxes of $15,000 ( 35,000) Net income $36,400 ======== Prepare a Statement of Retained Earnings Samson Company Statement of Retained Earnings For the Year Ended December 31, 2005 Retained earnings, January 1, 2005 $60,600 Plus net income 36,400 Less dividen ds ( 8,000) - Retained earnings, December 31, 2005 79,000 ======= Prepare a classified oddment Sheet Samson Company Balance Sheet December 31, 2005 Assets original Assets Cash $ 90,000 Marketable securities 15,000 Accounts receivable $ 60,000 Less allowance for doubtful accounts ( 3,000) - 57,000 Inventories 120,000 Total Current Assets 282,000 Property, Plant, and EquipmentMachinery and Equipment $150,000 Less accumulated depreciation ( 42,000) Total Property, Plant, and Equipment 108,000 Other Assets Cash surrender value of life insurance $ 22,000 Patents 18,000 - Total Other Assets 40,000 - Total Assets $430,000 ======== Liabilities and Stockholders Equity Liabilities Current Liabilities Accounts payable $ 71,000 Salaries payable 5,000 Total Current Liabilities 76,000 Long-term Liabilities Notes payable 105,000 - Total Liabilities 181,000 Stockholders Equity Common stock $150,000 Paid-in-capital in excess of par 30,000 Retained earnings 79,000 Treasury stock ( 10,000) - Tot al Stockholders Equity 249,000 - Total Liabilities and Stockholders Equity $430,000 ========