Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ign
ID: 2493651 • Letter: P
Question
Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
Debit
Credit
Cash
$ 200,620
Sales
$ 8,102,670
Debt Investments (trading) (cost, $145,000)
155,670
Cost of Goods Sold
4,802,670
Debt Investments (long-term)
302,620
Equity Investments (long-term)
280,620
Notes Payable (short-term)
92,670
Accounts Payable
457,670
Selling Expenses
2,002,670
Investment Revenue
64,550
Land
260,000
Buildings
1,043,620
Dividends Payable
139,620
Accrued Liabilities
98,670
Accounts Receivable
437,670
Accumulated Depreciation-Buildings
152,000
Allowance for Doubtful Accounts
27,670
Administrative Expenses
901,550
Interest Expense
212,550
Inventory
600,620
Gain (extraordinary)
81,550
Notes Payable (long-term)
903,620
Equipment
602,670
Bonds Payable
1,003,620
Accumulated Depreciation-Equipment
60,000
Franchises
160,000
Common Stock ($5 par)
1,002,670
Treasury Stock
193,670
Patents
195,000
Retained Earnings
81,620
Paid-in Capital in Excess of Par
83,620
Totals
$12,352,220
$12,352,220
Explanation / Answer
Calculation of Net Profit:
Particulars
Amount ($)
Sales
8102670
Less: Cost of Goods Sold
4802670
Gross Profit
3300000
Investment Revenue
64550
Extraordinary Gain
81550
Less: Selling Expenses
2002670
Less: Administrative Expenses
901550
Less: Interest Expense
212550
Net Profit
329330
Balance Sheet of Scott Butler Corporation as at December 31 2014
Liabilities
Amount ($)
Assets
Amount ($)
Shareholders Funds:
Non Current Assets:
Common Stock
1002670
Non Current Investments (302620 + 280620)
583240
Treasury Stock
-193670
Paid in Capital in excess of par
83620
Fixed Assets:
Retained Earnings (81620 + 329330)
410950
Tangible:
1303570
Land
260000
Buildings
1043620
Less: Accumulated Depreciation
152000
Non Current Liabilities:
891620
Notes Payable
903620
Equipment
602670
Bonds Payable
1003620
Less: Accumulated Depreciation
60000
542670
Intangible:
Franchises
160000
Patents
195000
Current Liabilities:
Current Assets:
Notes Payable
92670
Short Term Investment
155670
Accounts Payable
457670
Inventory
600620
Allowance for Doubtful Accounts
27670
Accounts Receivable
437670
Dividend Payable
139620
Cash
200620
Accrued Liabilities
98670
1394580
816300
4027110
4027110
Particulars
Amount ($)
Sales
8102670
Less: Cost of Goods Sold
4802670
Gross Profit
3300000
Investment Revenue
64550
Extraordinary Gain
81550
Less: Selling Expenses
2002670
Less: Administrative Expenses
901550
Less: Interest Expense
212550
Net Profit
329330