Question;One client had indicated that they were interested in purchasing $45,500 worth of products. However, the client has not actually committed to the purchase.?The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2012 and did not adjust ending inventory for the $45,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.Additional information for Module 3:?The company made a secondary offering of stock and raised an additional $225,000.?The company had already paid $22,000 in dividends before deciding on the offering.?The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $20,000 and a note to the bank covers the rest.Smith Company31-Dec-12Trial Balance (accounts in alphabetical order)DebitCreditAccounts payable67,000Accounts receivable24,500Cash30,000Common stock10,000Depreciation expense24,350Cost of goods sold234,000Equipment (net of depreciation)316,000Insurance1,400Inventory25,000Long-term debt145,000Marketing4,500Paid-in capital90,000Property taxes8,900Rent18,000Retained earnings???Revenues406,000Salaries67,500Utilities6,700Total760,850718,000Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in Module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.
Paper#41946 | Written in 18-Jul-2015Price : $20