Question Details

ACC 201 Module 2 SLP INCOME STATEMENT

Module 2 SLP
INCOME STATEMENT
We are using the same company as in the first Module. However, you need to consider some additional information.
•	One client 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