Hi, I have to create an Income Statement and Balance Sheet using the following i

Question

Hi,

I have to create an Income Statement and Balance Sheet using the following information, but I believe there is information missing?? Am I wrong, or is this supposed to be something like I need to fill in the rest of the information or a condensed version of these statements? Please see the information below:


Using the following end of month account balances, create an Income Statement and a Balance Sheet with the proper format and in the proper order. How much did I end the month with in Retained Earnings? How much did I start the month with? Make sure to create your solution in Excel, save it with your name in the file name, and submit it to the assignment.


Mortgage Payable $70,000
Cost of Sales $45,000
Common Stock $27,000
Cash $10,000
Net Sales $85,000
Furniture $35,000
Operating Expenses $25,000
Accounts Payable $15,000
Admin Expenses $10,000
Accounts Receivable $25,000
Building $80,000
Inventory $6,000
Notes Payable $14,000
Retained Earnings $???

Explanation / Answer

How much did I end the month with in Retained Earnings?
                           Balance Sheet
Assets
Current Assets
Cash                                            $10,000
Accounts Receivables                   $25,000
Inventory                                      $6,000
Total Current Assets                    $41,000

Prpoerty & Equipments
Furniture                                    $35,000
Building                                      $80,000
Total Fixed Assets                     $115,000

Total Assets                          $156,000

Liabilities
Current Liabilities
Notes Payable                            $14,000
Accounts Payables                      $15,000
Total Current Liabilities            $29,000

Long Term Debt
Mortgage Payable                      $70,000
Total Long Term Debt               $70,000

Stockholders' Equity
Common Stock                        $27,000
Retained Earnings                  $30,0001
Total Shareholders' Equity       $57,000

Total Liabilities &
Shareholders' Equity         $156,000

1Balancing figure (Total Assets $156,000 less Total CL $29,000 Less
Mortgage $70,000 Less Common Stock $27,000)  

Income Statement
Net Sales                                 $85,000
Cost of Sales                           $45,000
Gross Profit                            $40,000
Operating Expenses $25,000
Admin expenses      $10,000 $35,000
Net Operating Income            $5,000

How much did I start the month with? $30,000 - $5,000 = $25,000

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