I need help with my homework
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I need help with my homework
At the end of the first year of operations, Minute Print Company had the following account balances at Dec 31, 20x1:
Equipment - $230,000
Sales - $488,000
Bank Loan - $30,000
Wage Expense - $62,000
Supplies on Hand - $18,000
Cash - $44,000
Supplies Used - $204,000
Retained Earnings - ?
Prepaid Rent - $2,000
Other Expense - $9,000
Amortization Expense - $30,000
Dividends Declared - $3,000
Accounts Payable - $8,000
Common Shares - $100,000
Rent Expense - $24,000
a] Identify the income statement accounts and calculate net income.
b] Subtract the dividends declared from the net income you calculated in part a] to find the amount of retained earnings at Dec 31, 20x1.
c]Prepare a classified balance sheet for Dec 31, 20x1. Use the amount calculated in part b] for retained earnings.
**I can't get my balance sheet to balance.. any business people out there? I'd really appreciate some ideas/help.***
Equipment - $230,000
Sales - $488,000
Bank Loan - $30,000
Wage Expense - $62,000
Supplies on Hand - $18,000
Cash - $44,000
Supplies Used - $204,000
Retained Earnings - ?
Prepaid Rent - $2,000
Other Expense - $9,000
Amortization Expense - $30,000
Dividends Declared - $3,000
Accounts Payable - $8,000
Common Shares - $100,000
Rent Expense - $24,000
a] Identify the income statement accounts and calculate net income.
b] Subtract the dividends declared from the net income you calculated in part a] to find the amount of retained earnings at Dec 31, 20x1.
c]Prepare a classified balance sheet for Dec 31, 20x1. Use the amount calculated in part b] for retained earnings.
**I can't get my balance sheet to balance.. any business people out there? I'd really appreciate some ideas/help.***
Are there any business pple here?
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a] Income statement account:
Sales Revenue - $488,000
Supplies Used - $204,000
Gross Profit - $284,000
Amortization Expense - $30,000
Wage Expense - $62,000
Rent Expense - $24,000
Other Expense - $9,000
Bank Loan - $30,000
Net Income - $129,000
________________________
b] Dividends declared - $3,000
Retained Earnings - $129,000 - $3,000 = $126,000
_________________________
c] Minute Print Company Balance Sheet
Assets
Current Assets
Cash $44,000
Prepaid Rent $2,000
Supplies On Hand $18,000
Total Current Assets $64,000
Equipment $2300,000
Total Assets $294,000
Liabilities
Current Liabilites
Accounts Payable $8,000
Wage Expense $62,000
Bank Loan $30,000
Rent Expense $24,000
Other Expense $9,000
Amortization Expense $30,000
Total Liabilites $163,000
Shareholders Equity
Common Shares $100,000
Retained Earnings $126,000
Dividedns Declared $3,000
Total S.E. $229,000
TOTAL LIABILITES + S.E. = $163,000 + $229,000 = $392,000
Assets = $294,000
Liabilites - $392,000
I'm off by like a hundred grand! I don't know what I did wrong.
Sales Revenue - $488,000
Supplies Used - $204,000
Gross Profit - $284,000
Amortization Expense - $30,000
Wage Expense - $62,000
Rent Expense - $24,000
Other Expense - $9,000
Bank Loan - $30,000
Net Income - $129,000
________________________
b] Dividends declared - $3,000
Retained Earnings - $129,000 - $3,000 = $126,000
_________________________
c] Minute Print Company Balance Sheet
Assets
Current Assets
Cash $44,000
Prepaid Rent $2,000
Supplies On Hand $18,000
Total Current Assets $64,000
Equipment $2300,000
Total Assets $294,000
Liabilities
Current Liabilites
Accounts Payable $8,000
Wage Expense $62,000
Bank Loan $30,000
Rent Expense $24,000
Other Expense $9,000
Amortization Expense $30,000
Total Liabilites $163,000
Shareholders Equity
Common Shares $100,000
Retained Earnings $126,000
Dividedns Declared $3,000
Total S.E. $229,000
TOTAL LIABILITES + S.E. = $163,000 + $229,000 = $392,000
Assets = $294,000
Liabilites - $392,000
I'm off by like a hundred grand! I don't know what I did wrong.
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From: Brighton
a) Income Statement
Sales - $488,000
Cost of Sales - ($204,000)
Gross Profit - $284,000
Overheads
Wage Expense - ($62,000)
Other Expense - ($9,000)
Rent Expense - ($24,000)
Total Overheads - ($95,000)
EBITDA - $189,000
Amortization Expense - ($30,000)
Net Income - $159,000
b] $159,000 less $3,000 = $156,000
c] Balance Sheet
Assets
Equipment - $230,000
Supplies on Hand - $18,000
Cash - $44,000
Prepaid Rent - $2,000
Total Assets - $294,000
Liabilities
Bank Loan - ($30,000)
Accounts Payable - ($8,000)
Total Liabilities - ($38,000)
Net Assets - $256,000
Equity
Common Shares - $100,000
Retained Earnings - $156,000
Total Equity - $256,000
Sales - $488,000
Cost of Sales - ($204,000)
Gross Profit - $284,000
Overheads
Wage Expense - ($62,000)
Other Expense - ($9,000)
Rent Expense - ($24,000)
Total Overheads - ($95,000)
EBITDA - $189,000
Amortization Expense - ($30,000)
Net Income - $159,000
b] $159,000 less $3,000 = $156,000
c] Balance Sheet
Assets
Equipment - $230,000
Supplies on Hand - $18,000
Cash - $44,000
Prepaid Rent - $2,000
Total Assets - $294,000
Liabilities
Bank Loan - ($30,000)
Accounts Payable - ($8,000)
Total Liabilities - ($38,000)
Net Assets - $256,000
Equity
Common Shares - $100,000
Retained Earnings - $156,000
Total Equity - $256,000