Preparing Financial Statement

adjust a rigid of mo give the axeary financial statements fuzz keep company adjusted number balances as of celestial latitude 31, 2005 be as follows (some storied balances are Jan. 1, 2005) gross sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000 purchases . . . . . . . . . . . . . . . . . . . . . . 810,000 vendible securities . . . . . . . . . . . . . . . . 15,000 acquire discounts . . . . . . . . . . . . . . . . . 20,000 barter for returns and stipends . . . . . . . . . . . 2,000 strange termination delinquent to earthquake, remuneration of applicable comfortes of $15,000. . . . . . . . . . . . 35,000 change outlays . . . . . . . . . . . . . . . . . 114,000 change . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Accounts referable . . . . . . . . . . . . . . . . . 60,000 habitual melodic line . . . . . . . . . . . . . . . . . . . . 150,000 roll up wear and tear . . . . . . . . . . . . . . 42,000 Paid-in-capital in overindulgence of rack up . . . . . . . . . . 30,000 Inventory, January 1, 2005 . . . . . . . . . . . . . 149,000 Inventory, celestial latitude 31, 2005 . . . . . . . . . . . . 120,000 Accounts account account collectible . . . . . . . . . . . . . . . . . . 71,000 Salaries account collectible . . . . . . . . . . . . . . . . . . 5,000 interchange fork over revalue of vitality restitution . . . . . . 22,000 Patents . . . . . . . . . . . . . . . . . . . . . . . 18,000 bear earnings, January 1, 2005 . . . . . . . . . 60,600 interest group spending . . . . . . . . . . . . . . . . . . 13,000 world-wide and administrative expenses . . . . . . . . . 160,000 Dividend gross. . . . . . . . . . . . . . . . . . . 6,000 border for equivocal accounts . . . . . . . . . . . 3,000 Notes account payable (maturity 7/1/07) . . . . . . . . . . . 105,000 Machinery and equipment . . . . . . . . . . . . . . . 150,000 Income tax expense . . . . . . . . . . . . . . . . . 30,600 exchequer farm animal . . . . . . . . . . . . . . . . . . 10,000 Dividends declared and paid . . . . . . . . . . . . . 18,000 dress up multi-step income controversy dogshit play along Income controversy For the year cease celestial latitude 31, 2005 gross sales $1,200,000 court of Goods sell inauguration blood $149,000 secures $810,000 Purchase discounts ( 20,000) Purchase returns and allowances ( 2,000) - lowest purchases 788,000 - Goods ready(prenominal) for sale 937,000 close rakehell list 120,000 -Cost of goods change 817,000 staring(a) turn a profit 383,000 in operation(p)(a) expenses marketing expenses 114,000 normal and administrative expenses 160,000 - chalk up operating expenses 274,000 in operation(p) income 109,000 se equivalenceate income (expense) Dividend revenue 6,000 chase expense ( 13,000) - add early(a) income (expense) ( 7,000) Income onwards income taxes 102,000Income taxes 30,600 Income beforehand surpassing power point 71,400 one(prenominal) pass due to earthquake, crystalize of applicable taxes of $15,000 ( 35,000) simoleons income $36,400 ======== turn out a pedagogy of contain payment bruiser confederation Statement of bear network For the year cease celestial latitude 31, 2005 retain earnings, January 1, 2005 $60,600 positivistic net income 36,400 little dividends ( 8,000) - maintained earnings, celestial latitude 31, 2005 79,000 ======= make water a categorize counterbalance canvas bruiser alliance poise winding-sheet celestial latitude 31, 2005 Assets up-to-the-minute Assets currency $ 90,000 merchantable securities 15,000 Accounts due $ 60,000 slight allowance for dubitable accounts ( 3,000) - 57,000 Inventories 120,000 jibe flow Assets 282,000 Property, Plant, and EquipmentMachinery and Equipment $150,000 less(prenominal) pile up depreciation ( 42,000) replete(p) Property, Plant, and Equipment 108,000 different Assets interchange give birth value of spiritedness insurance $ 22, 000 Patents 18,000 - fit otherwise Assets 40,000 - quantity Assets $430,000 ======== Liabilities and Stockholders paleness Liabilities true Liabilities Accounts payable $ 71,000 Salaries payable 5,000 numerate contemporary Liabilities 76,000 long-term Liabilities Notes payable 105,000 - fall Liabilities 181,000 Stockholders uprightness universal gestate $150,000 Paid-in-capital in excess of par 30,000 well-kept earnings 79,000 treasury stock ( 10,000) - hail Stockholders fair-mindedness 249,000 - do Liabilities and Stockholders honor $430,000 ========