View the step-by-step solution to:

One client had indicated that they were interested in purchasing $35,500 worth of products. However, the client has not actually committed to the...

One client had indicated that they were interested in purchasing $35,500 worth of products. However, the client has not actually committed to the purchase.
The bookkeeper may have made a mistake when computing cost of good sold. She included total production costs for 2011 and did not adjust ending inventory for the $35,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for module 3:

The company made a secondary offering of stock and raised an additional $250,000.
The company had already paid $24,000 in dividends before deciding on the offering.
The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $500,000, the downpayment is $50,000 and a note to the bank covers the rest.
Nybrostrand Company

31-Dec-11

Trial Balance (accounts in alphabetical order)



Debit

Credit

Accounts payable



67,000

Accounts receivable

24,500



Cash

16,700



Common stock



10,000

Depreciation expense

24,350



Cost of goods sold

254,000



Equipment (net of depreciation)

425,000



Insurance

1,400



Inventory

25,000



Long-term debt



145,000

Marketing

4,500



Paid-in capital



90,000

Property taxes

8,900



Rent

18,000



Retained earnings





Revenues



456,000

Salaries

67,500



Utilities

6,700









Total

876,550

768,000



Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question