Constructing Financial Statements from Account Data Barth Company reports the fo
ID: 2637552 • Letter: C
Question
Constructing Financial Statements from Account Data
Barth Company reports the following year-end account balances at December 31, 2013. Prepare the 2013 income statement and the balance sheet as of December 31, 2013.
Accounts payable $16,000 Inventory $36,000
Accounts receivable $30,000 Land $80,000
Bondspayable,long-term $200,000 Goodwill $8,000
Buildings151,000 Retained earnings$160,000
Cash $148,000 Sales revenue $500,000
Common stock $150,000 Suppliesinventory$3,000
Cost of goods sold180,000 Suppliesexpense6,000
Equipment70,000 Wages expense 40,000
Prepare Barth Income Statement and Balance Sheet
Explanation / Answer
Balance Sheet
Assets
Current Assets
Cash $148,000
Accounts receivable $30,000
Suppliesinventory$3,000
Inventory $36,000
Total Current Assets $217,000
Long term assets
Land $80,000
Equipment $70,000
Goodwill $8,000
Buildings $151,000
Total long term assets $309,000
Total assets $526,000
Liabilities
Accounts payable $16,000
Bondspayable,long-term $200,000
Shareholders Equity
Retained earnings$160,000
Common stock $150,000
Total Liabilities $526,000
______________________________________________________________________________________
Income Statement
Sales revenue $500,000
Less: Cost of goods sold180,000
Income 320,000
Expense
Suppliesexpense6,000
Wages expense 40,000
total expense 46,000
Net Income 274,000
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