accountant for flower shoppe

You are an accountant for The Flower Shoppe. Your supervisor has asked you to help her prepare the year-end financial statements. Before you do, she wants to ensure that you understand some main points.

1. Explain the following:
   • The elements of the balance sheet, their purposes, and how to measure them
   • The elements and purpose of the statement of changes in stockholder's equity
2. Based on the adjusted trial balance and additional information, prepare the following in an Excel file to give to the controller for review:
   • Balance sheet
   • Income statement
   • Statement of retained earnings
   • Statement of cash flows

The following is additional information about the Flower Shoppe that is needed for financial-statement preparation:

• Net income for the year ended December 31, 2008 was $10,845.
• Changes from the prior year's balances included the following:
  • a decrease in accounts receivable of $300.
  • a decrease in inventory of $450.
  • an increase in accounts payable of $250.
  • an decrease in accrued expenses of $100.
• Land was purchased in April for $3,500.
• Cash as of January 1, 2008 was $10,105.

The Flower Shoppe

Adjusted Trial Balance

December 31, 2008

 

Debit

Credit

Cash

$22,750

 Accounts Receivable

3,200

 Inventory

8,000

 Land

27,000

 Building

56,000

 Accumulated Depreciation

16,800

Accounts Payable 

4,600

Accrued Expenses 

2,500

Common Stock 

20,000

Additional Paid-in Capital 

10,000

Dividends

1,200

Retained Earnings 

53,405

Sales 

112,020

Returns

1,300

Purchases

47,000

Salaries

38,000

Supplies

870

Utilities

5,225

Telephone

2,850

Bank Charges

330

Depreciation Expense

5,600

 

$219,325

$219,325

Please submit your assignment.

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