balance sheet (sip)

BALANCE SHEET

We're continuing to analyze the same company as in Modules 1 and 2.

Additional information added in Module 2

• One client indicated that they were interested in purchasing $42,500 worth of products. 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.

Additional information for Module 3

• The company made a secondary offering of stock and raised an additional $180,000 which includes $150,000 of Paid-in Capital.
• The company had already paid $15,000 in dividends before deciding on the offering.
• The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the down payment is $40,000 and a note to the bank covers the rest.

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 a balance sheet for the company in good format. Update the balance sheet for the changes to income in Module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.

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.