Blazer Company - Balance Sheet As of 12/31/2014 Assets Current Assets Cash $ 50,
ID: 2424083 • Letter: B
Question
Blazer Company - Balance Sheet
As of 12/31/2014
Assets
Current Assets
Cash
$ 50,000
Accounts Receivable
$ 35,000
Total Current Assets
$85,000
Long-term Investments
Investments in Hokie Co. - AFS
$25,000
Property Plant and Equipment
Printing Equipment
$100,000
less Accumulated Depreciation
$ (40,000)
$60,000
Building
$ 110,000
less Accumulated Depreciation
$ (3,667)
$106,333
Intangible Assets
Trademark
$10,000
Total Assets
$ 286,333
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts Payable
$115,000
Unearned Revenue
$45,000
Total Current Liabilities
$160,000
Total Liabilities
$ 160,000
Stockholder's Equity
Capital Stock:
Common Stock ($1 par value 10,000 shares issued)
$10,000
Additional Paid in Capital
$50,000
Total Paid in Capital
$ 60,000
Retained Earnings
$ 66,333
Total Stockholder's Equity
$126,333
Total Liabilities and Stockholder's Equity
$286,333
The Following Events Happened in 2015
On Jan. 1 Blazer Co. issued 1000 shares of 6% $10 par preferred stock for $20,000.
Blazer Co. had $150,000 in sales ($100,000 cash and $50,000 on account).
On Jan. 1 Blazer Co. paid $20,000 to rent a building for the next 12 months
Blazer Co. purchased supplies for $10,000 on account
Blazer Co. collected $35,000 in cash for settlement of outstanding accounts receivable
Blazer Co. provided services to earn all unearned revenue in 2015.
At the end of the year only $2000 of supplies remained
On 12-31 Blazer Company declared and paid preferred dividends
Other Information:
The Building has a useful life of 10 years and a salvage value of 10,000. The company uses straight line depreciation.
The Printing Equipment had a useful life of 10 years and a salvage value of 50,000. The company uses straight line depreciation.
Blazer Co's Income Tax Rate is 30 percent and taxes will not be paid until 2016.
Instructions: Using this information, prepare the 2015 Income Statement and Balance.
Blazer Company - Balance Sheet
As of 12/31/2014
Assets
Current Assets
Cash
$ 50,000
Accounts Receivable
$ 35,000
Total Current Assets
$85,000
Long-term Investments
Investments in Hokie Co. - AFS
$25,000
Property Plant and Equipment
Printing Equipment
$100,000
less Accumulated Depreciation
$ (40,000)
$60,000
Building
$ 110,000
less Accumulated Depreciation
$ (3,667)
$106,333
Intangible Assets
Trademark
$10,000
Total Assets
$ 286,333
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts Payable
$115,000
Unearned Revenue
$45,000
Total Current Liabilities
$160,000
Total Liabilities
$ 160,000
Stockholder's Equity
Capital Stock:
Common Stock ($1 par value 10,000 shares issued)
$10,000
Additional Paid in Capital
$50,000
Total Paid in Capital
$ 60,000
Retained Earnings
$ 66,333
Total Stockholder's Equity
$126,333
Total Liabilities and Stockholder's Equity
$286,333
Explanation / Answer
profit and loss statement:
Particular Amount
revenue 195000
- supplies consumed (8000)
- Depriciation
building (10000)
epuipment (5000)
- rent (20000)
Net profit 152000
Tax expense (45600)
Dividend paid (600)
Transfered to retained earning 105800
balance sheet
Assets
building 96333
euipment 55000
trademark 10000
investment 25000
cash 184400
account receivable 50000
supplies 2000
Total assets 422733
Liablities
common stock 10000
pref. stock 10000
add. capital 6000
retained earning 172133
accoun payable 125000
tax payable 45600
Total Liabilities 422733
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