the numbers for the trial balance were given except for the bigger ones which i

Question

the numbers for the trial balance were given except for the bigger ones which i got from completing part one

Part 1 Grindstone Paving started selling products to customers in 2017 in addition to offering paving services. In 2018, the company also started to offer landscaping services. Currently, the owner (John) owns all the shares in the corporation To raise the needed cash, John decides to offer common and preferred stock for sale to investors starting in 2018. Below is the balance sheet at the end of 2017 Grindstone Paving Inc. Balance Sheet As at December 31, 2017 Assets Cash Accounts Receivable Prepaid Insurance $121,000 25,500 7,200 Liabilities Accounts Payable Unearned Revenue Bank Loan $21,000 9,000 17,700 Total Liabilities Stockholders' Equity Common Stock - 60,000 issued Retained Earnings Total Stockholders' Equity Liabilities & Stockholders' Equity 47,700 Inventory Property, Plant & Equipment Accumulated Depreciation 5,000 55,000 32,000 60,000 134,000 Total Assets $181,700 $181,700 John has authorized 100,000 common shares and 25,000 preferred shares. The preferred stock will be cumulative and pay $9 dividends. John wants to keep control of his business, so he will keep his 60,000 common shares and will sit on the board of directors. John has located a few private investors that wish to purchase stock in the corporation. Some want common stock, while other are interested in preferred stock. On January 20, 2018, John issues 30,000 common shares for $75,000 cash and issues 7,000 preferred shares for $28,000 cash On March 1, 2018, Grindstone Paving issued and sold $200,000, 6 year bonds with an interest rate of 7%. The market rate at the time of issue was 8%. Any premium or discount on the bond is amortized using the straight line method Interest will be paid annually on February 28. Use a 4 decimal factor for the bond calculation

Explanation / Answer

As per your requirement part 2 is as follows :

Particulars                                   Amount

Sales Revenue                            650000

Less:

Cost of goods sold                  (292500)

Sales discount                          (6000)

Travel expenses                       (15400)

Telephone                                (3000)

Sales returns and allowance    (7000)

Salaries                                    (70000)

Rent                                          (32000)

Professional fee exp                 (5400)

Prepaid insurance                    (14000)

Maintenance exp (8000)

Depreciation exp                     (35000)

Loss from discontinued

Operation                                  (10200)

Interest                                     (3551)

                                                 -------------

                                                 147949

Less tax @30%                       (44385)

                                                --------------

Profit after tax                        103564

                                                

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