financial statements project
Carr Company has the following ledger accounts and adjusted balances as of December 31, 2019.All accounts have normal balances.Carr’s income tax rate is 20%.Carr has 300,000 shares of Common Stock authorized, 100,000 shares of Common Stock issued, and 95,000 shares of Common Stock outstanding.
Accounts Payable…………………………….58,500
Accounts Receivable………………………… 405,000
Accumulated Depreciation-Building………… 112,500
Accumulated Depreciation-Equipment……….90,000
Administrative Expenses…………………….90,000
Allowance for Doubtful Accounts……………45,000
Bonds Payable……………………………….. 400,000
Building……………………………………..1,125,000
Cash………………………………………….58,500
Common Stock………………………………600,000
Cost of Goods Sold………………………….855,000
Discount on Bonds Payable…………………10,000
Dividends……………………………………30,000
Equipment…………………………………… 435,000
Income from Operations of Division X……..90,000
(Division X is a component of Carr Company)
Interest Revenue…………………………….. 60,000
Inventory………………………………………630,000
Land (held for future use)……………………. 450,000
Land (used for building)…………………….. 247,500
Loss from Sale of Division X………………………180,000
(Division X is a component of Carr Company)
Loss on Sale of Investments.……………….. .. 22,500
Mortgage Payable …………..………………. 562,500*
Paid-In Capital in Excess of Par………………396,000
Prepaid Rent………………………………….22,500**
Retained Earnings, January 1, 2019………… 562,500
Sales Discounts………………………………. 45,000
Sales Returns and Allowances……………….. 75,000
Sales Revenue………………………………2,302,500
Selling Expenses……………………………. 292,500
Trademark……………………………………67,500
Treasury Stock……………………………….60,000
*$40,000 of the principal comes due in 2019.
**Two years rent on offsite document storage paid in advance.
Instructions:
Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.
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