Preparing Financial Statements Argyle Company has the following account balances at December 31, 2004. During the year, Argyle had 10,000 shares of stock outstanding.
|
Argyle Company |
|
|
Account |
Balance |
|
Cash |
$4,650 |
|
Accounts receivable |
16,350 |
|
Inventory |
30,500 |
|
Supplies |
7,700 |
|
Prepaid insurance |
3,550 |
|
Equipment |
42,500 |
|
Accumulated depreciation—equipment |
17,500 |
|
Buildings |
170,000 |
|
Accumulated depreciation—buildings |
105,000 |
|
Land |
10,000 |
|
Patents |
3,000 |
|
Accounts payable |
18,250 |
|
Wages payable |
3,450 |
|
Interest payable |
1,700 |
|
Income taxes payable |
4,050 |
|
Notes payable, current portion |
2,500 |
|
Account |
Balance |
|
Notes payable, long term |
37,500 |
|
Owners” investment |
25,000 |
|
Retained earnings, December 31, 2003 |
60,150 |
|
Dividends |
15,000 |
|
Sales revenue |
130,000 |
|
Cost of goods sold |
62,500 |
|
Wages expense |
16,000 |
|
Utilities expense |
2,000 |
|
Depreciation expense |
1,050 |
|
Insurance expense |
1,500 |
|
Supplies expense |
2,300 |
|
Interest expense |
3,650 |
|
Advertising expense |
1,450 |
|
Patent expense |
400 |
|
Income tax expense |
11,000 |
Required
A. Prepare an income statement in good form based on Argyle Company”s account balances.
B. Prepare a classified balance sheet as of December 31, 2004. Include appropriate headings and subheadings.