Problem:
Prepare a well labeled and classified balance sheet and income statement and statement of retained earnings for The Montana Pasta company as Dec 31, 2011 and the year ended Dec 31, 2011.
Give the list of accounts and thier respective balances below you obtained from the general ledger.
- pasta revenue 1250000
- retained earnings, january 100000
- cash 100000
- notes payable due january 31,2012 50000
- rent expense 20000
- interest income 10000
- income tax expense 50000
- accounts payable 85000
- accounts receivable 28000
- advertising expenses 25000
- cost of goods sold expense 500000
- general and administrative expense 50000
- contributed capital 100000
- dividends declared and paid 10000
- pasta inventories 250000
- land 87000
- notes payable due january 31,2013 200000
- other long-term assets 100000
- unearned revenue- short -term 50000
- interest expense 25000
- other expenses 100000
- factory buildings 500000
Note: Be sure to show how you arrived at your answer.