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Intermediate Accounting

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Question

You are an accountant for The Flower Shoppe. Your supervisor has asked you to help her prepare the year-end financial statements. Before you do, she wants to ensure that you understand some main points.;Explain the following;The elements of the balance sheet, their purposes, and how to measure them;The elements and purpose of the statement of changes in stockholder's equity;Based on the adjusted trial balance and additional information, prepare the following in an Excel file to give to the controller for review;Balance sheet;Income statement;Statement of retained earnings;Statement of cash flows;The following is additional information about the Flower Shoppe that is needed for financial-statement preparation;Net income for the year ended December 31, 2008 was $10,845.;Changes from the prior year's balances included the following;a decrease in accounts receivable of $300.;a decrease in inventory of $450.;an increase in accounts payable of $250.;an decrease in accrued expenses of $100.;Land was purchased in April for $3,500.;Cash as of January 1, 2008 was $10,105.;The Flower Shoppe;Adjusted Trial Balance;December 31, 2008;Debit;Credit;Cash;$22,750;Accounts Receivable;3,200;Inventory;8,000;Land;27,000;Building;56,000;Accumulated Depreciation;16,800;Accounts Payable;4,600;Accrued Expenses;2,500;Common Stock;20,000;Additional Paid-in Capital;10,000;Dividends;1,200;Retained Earnings;53,405;Sales;112,020;Returns;1,300;Purchases;47,000;Salaries;38,000;Supplies;870;Utilities;5,225;Telephone;2,850;Bank Charges;330;Depreciation Expense;5,600;$219,325;$219,325;Please use the template included;The following grading criteria will apply to this assignment;Grading Criteria;Explain the elements of the balance sheet, their purposes, and how to measure them.;20%;Explain the elements and purpose of the statement of changes in stockholder's equity.;25%;Prepare the balance sheet.;15%;Prepare the income statement.;15%;Prepare the statement of retained earnings.;15%;Prepare the statement of cash flows.;10%;Good format, grammar and APA.;10%;TOTAL;100%

 

Paper#74947 | Written in 18-Jul-2015

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