Question

Managerial Accounting Question:

Using the account balances and heading listed below, complete the Financial Statements (with proper headings) for the fiscal year ended December 31, 2017 for Mitchell Company

Account Name Amount Account Name Amount

Accounts Payable $40,000 Machinery (net) 12,000

Accounts Receivable (net) 25,000 Marketable Securities 5,000

Accrued Liabilities 5,000 Mortgage Payable 45,000

Administration Expense 17,000 Net Sales 100,000

Bonds Payable 20,000 Notes Payable - Long Term 13,000

Buildings (net) 32,000 Notes Receivable 2,000

Cash 70,000 Other Expense (interest) 3,800

Common Stock 10,000 Other Income 2,000

Cost of Goods Sold 20,000 Paid in Capital In Excess of Par 15,000

Current Maturities of Long Term Debt 12,250 Patents 7,500

Dividends 12,000 Prepaid Advertising 32,500

Franchises 8,000 Retained Earnings, January 1, 2017 81,000

Goodwill 2,500 Salaries Payable 17,750

Income Tax expense 2,200 Selling Expense 30,000

Inventory 30,000 Supplies 7,500

Investments - Held to Maturity 12,000 Treasury Stock 2,000

Land 16,000 Unearned Sales Revenue 13,000

Land - not in use, to be sold in 5 years 25,000

Headings: Current Assets, Long-Term Investments, Property, Plant and Equipment, Intangible Assets, Total Assets, Current Liabilities, Long Term Liabilities, Stockholders' Equity, Income from Operations, Income Before Income Tax

Mitchell Company Don’t forget the
Income Statement statement date

2017 2016
$ 80,000
9,800
Gross Profit 80,000 70,200
25,000
16,200
Income From Operations 33,000 29,000
2,000
4,200
Income Before Income Tax 31,200 26,800
Income Tax 1,800

Net Income $29,000 $ 25,000

M. Baker
Page 1

Accounting 1B – Online
Written Assignment
Chapter 15

Mitchell Company
Statement of Retained Earnings

2017 2016
$ 56,000
Add: 25,000
Less: -
$ 98,000 $ 81,000

Mitchell Company
Balance Sheet

Current Assets should be

listed in order of liquidity
Current Assets 2017 2016
$18,000
7,000
50,000
2,000
20,000
5,000
500

Total Current Assets $172,000 $ 102,500
12,000

25,000

Total Long-Term Investments $37,000 $ 37,000

Land 46,000
32,000
13,000

Total Property, Plant and Equipment $60,000 $ 91,000
7,500

2,500
8,000

Total 18,000 18,000

Total Assets $287,000 $ 248,500
M. Baker

Page 2

Accounting 1B – Online
Written Assignment
Chapter 15
Current Liabilities
20,000
Accrued Liabilities 3,000
Unearned Revenue -
16,000
12,250

Total Current Liabilities

Mortgage Payable

$88,000 $ 51,250

58,250

13,000

22,000

Total Long Term Liabilities $78,000 $ 93,250
10,000

15,000
Retained Earnings 81,000
Less: 2,000

Total Stockholders Equity $121,000 104,000

Total Liab and S Equity $ $ 248,500

Answer 1