Problem:
Corn Company
December 31, 1999
Cash $98,000
Gross account receivable $151,000
Allowance for doubtful accounts(tax,insurance) $12,000
Pre-paid expense $30,000
Inventory $689,000
Land $195,000
Plant/property/equipment (ppe) $912,000
Accumulated depreciation on ppe $613,000
Trade accounts payable $123,000
Income tax payable $230,000
Mortage notes payable $560,000
Other long term debt $115,000
Paid in capital $125,000
Retain earnings $297,000
Corn Company
Following information is 2000
1. Company purchased $1,125,000 of inventory, all on credit. Then ending inventory totaled $667,000.
2. Company sales were $1,900,000. All credit
3. Management assumed that 1% of credit sales would be uncollected and recorded these credit sales as bad debt
4. For the year the company paid 1,150,000 total towards the trade cash payable
5.During the year $30,000 worth of accounts receivable were determined to uncollectible.
6. the company collected cash on accounts receivable totaling 1,890,000.
7. Company recognized $20,000 worth of property tax expense and $10,000 of insurance expense for the year. Both of these expenses were previously recognized as prepaid expense.
8. Salary expense $190,000 office expense $55,000 selling and administrative $89,000 ALL EXPENSES PAID IN CASH
9. Interest expense $70,000 paid in cash
10.the company made principle payments of $45,000 on their mortgage note and $15,000 on long term debt
11. company recognized $42,000 straight line depreciation.
12. company paid off income tax payable $230,000 in cash
13. the income tax expense for 2000 $100,000. The income tax for 2000 will be paid in 2001
14. the company declared and paid $100,000 in dividends
15. net income for 2000 $158,000
QUESTIONS:
A) Prepare a properly formatted balance sheet for the year 1999
B) What is the balance of cash for the December 31, 2000
C) What is the balance of retained earnings for December 31,2000