From the following data, prepare a classified balance sheet for Taylorsville Construction
Company at December 31, 2009.
Accounts payable . . . . . . . . . . . . . . . . . . . . . . $74,300
Accounts receivable . . . . . . . . . . . . . . . . . . . . .113,500
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .512,000
Owners' equity, 1/1/09 . . . . . . . . . . . . . . . . . .314,300
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 153,600
Distributions to owners during 2009 . . . . . . . . 48,100
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,250
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 90,000
Mortgage payable . . . . . . . . . . . . . . . . . . . . . .423,400
Net income for 2009 . . . . . . . . . . . . . . . . . . . .109,450
Owners' equity, 12/31/09 . . . . . . . . . . . . . . . .?
B)Income Statement Preparation
Income Statement Preparation
The following selected information is taken from the records ofPickard and Associates.
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $143,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . .95,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . .14,500
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 63,000
Supplies expense . . . . . . . . . . . . . . . . . . . . . . . .31,500
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . .12,000
Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . .2,500
Income taxes (30% of income before taxes) . . . . ?
Miscellaneous expense . . . . . . . . . . . . . . . . . . . .5,100
Owners' equity . . . . . . . . . . . . . . . . . . . . . . .. . . 215,000
Salaries expense . . . . . . . . . . . . . . . . . . . . . . . .78,000
Fees (revenues) . . . . . . . . . . . . . . . . . . . . . . . . .476,000
1. Prepare an income statement for the year ended December 31,2009. (Assume that 11,000 shares of stock are outstanding.)
2. Explain what the EPS ratio tells the reader about Pickard and Associates