Acc income statements slp

We are using the same company as in the first module. However, you need to consider some additional information.

  • One client had indicated that they were interested in purchasing $42,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase.
  • The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Nybrostrand Company
31-Dec-14
Trial Balance   (accounts in alphabetical order)
  Debit Credit
Accounts payable   $ 78,000
Accounts receivable $ 36,500  
Cash 30,000  
Common stock   10,000
Depreciation expense 24,350  
Cost of goods sold 307,000  
Equipment (net of   depreciation) 415,000  
Insurance 1,400  
Inventory 34,000  
Long-term debt   127,000
Marketing 4,500  
Paid-in capital   50,000
Property taxes 16,900  
Rent 28,000  
Retained earnings   ?
Revenues   586,000
Salaries 78,500  
Utilities 6,700  
     
Total 982,850 982,850

SLP Assignment Expectations

Prepare an income statement for the company in good format. Always include the name of the company and the period covered in the title. Don’t forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept.

The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format

 
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