M2 ♦ SERVICE COMPANY FINANCIAL STATEMENTS
Note: For a problem using the sole proprietorship form of business organization, download PFS from the website for this book found at cengagebrain.com.
Accounts payable $ 55,600 General expenses $112,350
Accounts receivable 103,890 Interest expense 6,750
Accumulated depreciation—equipment 26,250
Notes payable 46,335
Cash 80,370 Prepaid insurance 10,125
Common stock 300,000 Retained earnings, July 1, 2011 0
Salaries expense 621,450
Dividends 18,000 Sales 943,500
Equipment 280,000 Advertising expense 138,750
The ledger of Skitch Corp. showed the following balances after adjustment on June 30, 2012, the end of the current fiscal year:
The president of Skitch has asked you to develop a financial statement worksheet (file name FFS) that includes a single-step income statement, a statement of retained earnings, and a balance sheet. This worksheet will allow the financial statements to be prepared quickly by entering account balances in the appropriate cells on the worksheet. Use the information provided as input for your worksheet.
Review the Model-Building Problem Checklist on page 154 to ensure that your worksheet is complete. Print the worksheet when done. Check figure: Total assets, $448,135.
To test your model, use the following data for the year ended June 30, 2013:
Accounts payable $ 67,050 General expenses $108,150
Accounts receivable 92,700 Interest expense 9,000
Accumulated depreciation—equipment 52,500
Notes payable 44,085
Cash 72,400 Prepaid insurance 10,800
Common stock 300,000 Retained earnings, July 1, 2012 46,200
Salaries expense 659,835
Dividends 0 Sales 892,500
Equipment 320,000 Advertising expense 129,450
Print the worksheet when done. Check figure: Total assets, $443,400.