Grace Charles, Inc. Create a full set of financial statements for 2017 with 2016
ID: 2519196 • Letter: G
Question
Grace Charles, Inc.
Create a full set of financial statements for 2017 with 2016 presented for comparison purposes (excluding footnotes) for Grace Charles, Inc. based on a trial balance provided to you. This should be created in an excel file and create a complete set of financial statements which must include a balance sheet, income statement, statement of stockholders' equity, and a cash flow statement (indirect method). It must be created in excell using a format acceptable by GAAP. The trial balance is final, there are no adjustments needed. You must include any work or schedules that were necessary to prepare in order to complete the statements.For example, the line item for Cash on the balance sheet will include more than one cash trail balance account. You must provide a schedule showing that the amount on the financial statement comes from the sum of the trial balance accounts. This must be completed for every financial statemnt line item that is composed of more than one account.
Additional information for Grace Charles, Inc.
- Credits are negative and debits are positive amounts in the trail balance.
The numbering of the accounts in the trial balance
1000 - Assets
2000 - Liability
3000 - Equity
4000 - Revenue
5000 - Cost of Goods Sold
6000 - Operating Expense (Selling, General and Admin)
7000 - Other Income/ Expenses
8000 - Income Tax Expense
Cash payments on the note payable were $1,082,839 for 2017 and $ 210,000 for 2016
A vehicle was sold in 2017 for $10,000. The asset had a cost of $27,060 and accumulated depreciation of $20,000
A piece of machinery was sold in 2016 for $12,000. The asset had a cost of $30,158 and accumulated depreciation of $15,000
Property was purchased in 2017 for $128,201 and in 2016 for $230,297.
Equity:
Remember that the retained earnings amounts in the trial balance represent the beginning balance as of 1/1 of that year
1,000 shares of common stock were authorized and 700 shares were issued and outstanding prior to 2016. The par value is $1 per share
There are no potentially dilutive shares outstanding
No new shares were issued during 2017 and 2016
The only reason you need that you need the 2015 Balance Sheet is to prepare the 2016 cash flow statement
Balance Sheet - 2015
Trail Balance - 2017 and 2016 (3 Photos all one continuous trial balance)
2015 Cash and cash equivalents Rebates receivable Other receivables Accounts receivable, trade, net Inventory Prepaid expenses Property & Equipment, net Deferred tax asset, net Accounts payable Accrued expenses Income tax payable Notes payable Common stock Paid-in capital- excess of par Retained earnings 5,381,254 27,415 874,219 3,496,210 4,587,621 854,123 402,568 365,428 5,465,727 1,851,290 213,587 6,755,200 700 15,000 1,687,334Explanation / Answer
BALANCE SHEET 2017 Particulars 2017 2016 EQUITY AND LIABILITIES Shareholders' Funds Share Capital 15700.00 15700.00 Retained Earnings 2564804.00 2043307.00 Non-Current Liabilities Long-Term Borrowings 5315361.00 5462361.00 Deferred Tax Liabilities 13708.00 Current Liabilities Other Current Liabilities 3233503.00 5045742.00 Total 11129368.00 12580818.00 ASSETS Non Current Assets Fixed Assets Tangible Assets 448395.00 480065.00 Long Term Loans and Advances Current Assets Deffered Tax Asset 301044.00 367621.00 Inventories 4401780.00 5556344.00 Cash and Cash Equivalents 516646.00 1147931.00 Other Current Assets 5461503.00 5028857.00 Total 11129368.00 12580818.00 STATEMENT OF PROFIT AND LOSS FOR THE YEAR, 2017 Particulars Note No 2017 2016 REVENUE Revenue From Operations 1 27639150.00 27259574.00 Other Income TOTAL REVENUE 27639150.00 27259574.00 EXPENSES Cost of Materials Consumed 2 20655034.00 20514510.00 Operating Expenses SG&A 3 5896211.00 5812988.00 Other Expenses 4 28485.00 34551.00 TOTAL EXPENSES 26579730.00 26362049.00 Profit Before Tax 1059420.00 897525.00 Tax Expense: 537923.00 430382.00 Profit For The Year 521497.00 467143.00 Note 1 2017 2016 Sales Direct 2696556 2698273 Warehouse 25567557 25091764 Sales Return 624963 530463 27639150 27259574 Note 2 COGS Warehouse 18642093 18476777 Direct 2290258 2287321 Freightt in -58737 -53044 Purchase Discount -218580 -196544 20655034 20514510 Note 3 Operating Expenses Freight 106047 103926 Credit Card Fees 105457 103348 Salary 1979654 2038058 commission 240964 236144 sales commission 75335 73829 Vacation Pay Hourly -4022 -3942 Incentive bonus 91629 89796 Stock options 17178 16835 Overtime 80857 79240 Payroll Tax 229160 224577 unemployment insurance 21010 20590 pension Expense 42018 41177 group insuranse 417515 409165 401k Matching 9390 9202 advertisment 255322 250216 Meeting 13175 12912 Factory Meeting 662 649 Meal And Entertainment 27804 27248 leased Vehicle 158064 110803 Travel 71896 70458 Meetings 6523 6392 training 22934 22475 Tool 2020 1980 Truck Fuel 121550 119119 Truck Maintinance 46971 46032 Rent 665788 652472 Repair & Maintanance 45432 44523 uniforms 8940 8761 utility 120648 118235 water 7401 7253 utility other 15052 14751 insurance 126053 12352 Taxes And Licence Fees 8835 8658 Property Tax 36251 35526 local Tax 130820 128204 Publication 993 973 Office Supplies 25639 25127 Telephone Office 113667 111394 Telephone Cell 67190 65846 postage 1735 1700 Express Mail 12463 12213 Outside Service 115999 144412 janitorial 26977 26438 waste removal 10368 10161 Security 34173 33489 Legal Audit 41420 40591 Tax Preparation Fee 13477 13207 Depreciation 152811 137642 Bad Debt Recovery -25034 48831 5896211 5812988 Note 4 Other Income/Expense Interest Expense Non Watsco 31425 31393 Loss/Gain On Sale FA -2940 3158 28485 34551
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