Campus Company Trial Balance, December 31, 2016 Account Title Debit Credit Cash
ID: 2580457 • Letter: C
Question
Campus Company
Trial Balance, December 31, 2016
Account Title Debit Credit
Cash ……………………………………………………… $197,000
Sales Revenue………………………………………………….. $8,100,000
Receivables…………………………………………………….. 435,000
Inventory………………………………………………………. 597,000
Investments……………………………………………………. 729,000
Land……………………………………………………………. 260,000
Buildings……………………………………………………. 1,040,000
Accumulated depreciation-building………………………… 200,000
Accumulated depreciation-equipment……………………… 60,000
Equipment…………………………………………………… 600,000
Franchises…………………………………………………… 160,000
Patents………………………………………………………. 195,000
Payables…………………………………………………… 2,077,000
Cost of goods sold………………………………………… 4,800,000
Selling Expense………………………………………….. 1,800,000
Administrative expense…………………………………… 900,000
Interest expense…………………………………………… 151,000
Research and development expense…………………………. 100,000
Gain on sale of equipment………………………………….. 80,000
Common Stock, $5 par……………………………………… 1,000,000
Retained earnings…………………………………………… 78,000
Treasury stocks…………………………………………….. 351,000
Paid-in capital in excess of par…………………………… 720,000
$12,315,000 $12,315,000
Additional information
1. Receivables include:
Amount owed by customers $325,000
Allowance for uncollectible accounts from customers (20,000)
Prepaid advertising 10,000
Short-term loan due June 2017 120,000
Total receivables $435,000
2. Investments include the following:
229,000 investment that the company will sell in March 2017
500,000 long-term available-for sale investment
$729,000 Total investments
3. Payables consist of:
$ 200,000 note due June 30, 2017
1,800,000 bonds payable maturing 12/31/2030
70,000 due to suppliers for merchandise and services on account
7,000 received from a customer for merchandise to be provided in January 2017.
$2,077,000 Total payables
4. One million shares of $5 par value common stock are authorized of which 200,000 shares were issued. Treasury stocks consist of 40,000 shares of the company’s common stock.
5. On December 28, 2016 the board of directors declared a cash dividend of $0.09 per share on its common
stocks outstanding payable January 15, 2017. This transaction has not yet been recorded in the company’s accounts.
6. The company’s tax rate is 20%.
Required:
Use Microsoft Excel to prepare the following 2016 financial statements for Campus Company:
a. Multiple-step income statement that includes earnings per share disclosure.
b. Statement of retained earnings
c. Classified balance sheet.
Explanation / Answer
Campus Company a Multi step Income statement Sales Revenue 8100000 Less: Cost of goods sold 4800000 Gross Profit 3300000 Less: Administrative expenses 900000 Less: Selling expenses 1800000 Operating Income 600000 Non-operating & Other Less: Interest expense 151000 Less: Reserch & Developemnt 100000 Add: Gain on sale of equipment 80000 Total Non Operating 171000 Net Income before taxes 429000 Less : Tax expense 85800 Net Income 343200 Earning per share =Net Income/No. of shares outstnading 2.15 b Statement of retained earnings Retained earning on December 1 78000 Add: Net Income of the year 343200 Less: Cash dividend 14400 Retained earning on December 31 406800 c Classified Balance sheet Asset Current Asset Cash 197000 Accounts Receivable Amount owed by Customers 325000 Allowance for uncollectible accounts from customers -20000 Prepaid Advertising 10000 Short term loan due June 2017 120000 Total Receivables 435000 Inventory 597000 Total current Asset 1229000 Non-current asset Investment Trading Investment 229000 Investment available for sale 50000 729000 Tangible Fixed Asset land 260000 Building 1040000 Less : Accumulated Depreciation 200000 840000 Equipment 600000 Less : Accumulated Depreciation 60000 540000 Intangible Fixed asset Franchises 160000 Patent 195000 Total Non current asset 2724000 Total asset 3953000 Liabilities Current Liabilities Payables Short term Notes Payables 200000 Advance from customer 7000 Accounts Payable 70000 277000 Tax Payable 85800 Dividend Payable 14400 Total current Liabilties 377200 Non current laibilities Bonds 1800000 Total Non-current liabilities 1800000 Shareholder's Equity Common stock Authorised : one Million shares of $5 per Value Issued : 200000 shares of $5 per value 1000000 Paid in capital in excess of par 720000 Retained earnings 406800 Less : Treasury Stock 351000 1775800 Total Liabilties 3953000 We appreciate rating of our answers Thank You
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