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ACC - Nybrostrand Company Problem

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Question;We?re continuing to analyze the same company as in modules 2 and 3.Additional information added in module 3:One client had indicated that they were interested in purchasing $42,500 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 2013 and did not adjust ending inventory for the $42,500 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 4:The company made a secondary offering of stock and raised an additional $150,000.The company had already paid $15,000 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 $40,000 and a note to the bank covers the rest.Nybrostrand Company31-Dec-13Trial Balance (accounts in alphabetical order)DebitCreditAccounts payable $ 78,000Accounts receivable $ 50,000Cash 50,000Common stock 10,000Depreciation expense 24,350Cost of goods sold 307,000Equipment (net of depreciation) 415,000Insurance 1,400Inventory 34,000Long-term debt 127,000Marketing 4,500Paid-in capital 50,000Property taxes 16,900Rent 28,000Retained earnings?Revenues 586,000Salaries 50,000Utilities 6,700Total987,850851,000Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 3 and also consider the effect of paying the dividend. You do not need to include the income statement.The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format.More information is provided on the attachment provided.

 

Paper#43315 | Written in 18-Jul-2015

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