Q1) Creating Financial Statements
Following account balances are given for Rustic Company at December 31, 2007. Revenue and expenses accounts cover fiscal year ending on that date. All numbers are dollars except shares outstanding.
Account
|
Amount
|
Accounts payable
|
$14,000
|
Accounts receivable
|
18,000
|
Accumulated depreciation
|
30,000
|
Cash
|
6,000
|
Common stock, par value
|
20,000
|
Cost of goods sold
|
35,000
|
Current portion of long-term debt
|
2,000
|
Income taxes
|
6,000
|
Interest expense
|
4,000
|
Interest payable
|
500
|
Inventory
|
34,000
|
Long-term debt
|
40,000
|
Net income
|
12,000
|
Paid-in capital in excess of par
|
30,000
|
Patents and trademarks
|
4,000
|
Prepaid insurance
|
2,500
|
Property, plant and equipment, cost
|
150,000
|
Retained earnings
|
78,000
|
Sales revenues
|
110,000
|
Selling, general, and administrative expenses
|
65,000
|
Service revenues
|
12,000
|
Supplies
|
3,000
|
Wages pyable
|
3,000
|
Shares outstanding
|
20,000
|
A. Create the income statement in good form for Rustic Company.
B. Create classified balance sheet.