question archive Prepare a balance sheet and income statement for TNT, Inc

Prepare a balance sheet and income statement for TNT, Inc

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Prepare a balance sheet and income statement for TNT, Inc., from the following scrambled list of items:
Depreciation expense $ 99,000
Cash 337,500
Long-term debt 501,000
Sales 859,500
Accounts payable 153,000
General and administrative expense 118,500
Buildings and equipment 1,342,500
Notes payable 112,500
Accounts receivable 251,250
Interest expense 7,125
Accrued expenses 11,850
Common stock 433,500
Cost of goods sold 445,500
Inventory 148,950
Taxes 75,750
Accumulated depreciation 394,500
Taxes payable 21,750
Retained earnings 79,500

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Ans : There is a difference in Trial Balance , which is placed in Suspense A/c (dr) = 258975

Difference in B/S ( Liab – Asset)

2,58,975.00

TB

DR

2826075

 

CR

2567100

 

Diff

258975

 

 

 

Income statement

 

   

Current Yr

Sales

 

859500

Total Revenue (A)

859500

Expenses:

   

COGS

 

445500

Dep

 

99,000

Int

 

7125

Operat. Exp

 

118500

Taxes

 

75750

Total Expense (B)

745875

Net Income (A-B)

113625

     

Retained earnings

 

Op bal

 

79500

Add: Net Income

113625

Closing bal

 

193125

 

 

 

 

BALANCE SHEET

 

ASSETS

Current Yr

 

LIAB

Current Yr

CASH

 

3,37,500.00

C.L.

 

INVENTORY

148950.00

Accounts payable

1,53,000.00

ACCOUNTS RECV

251250.00

Accruals

11,850.00

TOTAL C.A.

 

7,37,700.00

Notes payable

1,12,500.00

FIXED ASSETS

 

Taxes Payable

21,750.00

Net fixed assets

13,42,500.00

 

TOTAL C.L.

2,99,100.00

Less: Acc dep

-3,94,500.00

9,48,000.00

   
     

L.T.Liab:

 
     

Long-term debt

5,01,000.00

     

Total liab

8,00,100.00

         
     

Shareholder's Equity

     

Common Stock

4,33,500.00

     

Retained earnings

1,93,125.00

     

Total Shareholder's Equity

6,26,625.00

Total assets

16,85,700.00

Total Liab n sh/h fund

14,26,725.00

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