Dope Dealer
12-12-2006, 11:33 PM
OK, this is a fairly easy accounting problem, but I can't seem to balance this damn thing. I am not in accounting (for obvious reasons when you see my work), but could someone tell me what I am doing wrong?
Income Statement
Revenues
Sales 27,000
Net Sales 27 000
Cost of Goods Sold
Inventory- Dec 31/03 6,500
Purchases 5000
Inventory- Dec 31/04 4,500
Cost of Goods Sold 7 000
Gross Profit 20 000
Operating Expenses
General Expenses
Rent expense 1,610
Utilities expense 1,000
Interest expense 1,800
Salary expense 1,050
Supplies expense 230
Depreciation expense 100
Telephone expense 675
Total Expenses 6 465
Net Profit 13 535
Balance Sheet
Assets
Current Assets
Cash 7,950
Accounts receivable 2,670
Marketable securities 7,150
Inventory 4500
Prepaid expenses 2,300
Total Current Assets 24 570
Fixed Assets
Equipment 26,000
Accum. Dep’n- equipment 4,375
Computer 8,000
Accum. Dep’n- computer 1,500
Total Fixed Assets 28 125
Intangible Assets
Goodwill 4,000
Total Assets 56 695
Liabilities and Owners Equity
Current Liabilities
Accounts payable 2,750
Notes payable 6,200.
Salaries payable 210
Total Liabilities 9 160
Long Term Liabilities
Bank loan payable 8,000
Total Liabilities 17 160
Owners Equity
Owner’s equity-Dec 31/03 30,000
+ Net Income 13 535
Less Withdrawals 4000
Total Equity 39 235
Total Liabilities and Owners Equity 56 395
As you can see I am out 300 bucks, but I dont know where or why. I have a feeling I am totally missing something.
And here is the given information that you have to work with:
Notes payable 6,200.
Sales 27,000
Cash 7,950
Salary expense 1,050
Interest expense 1,800
Equipment 26,000
Withdrawal by owner 4,000
Inventory- Dec 31/03 6,500
Marketable securities 7,150
Utilities expense 1,000
Accum. Dep’n- equipment 4,375
Computer 8,000
Rent expense 1,610
Inventory- Dec 31/04 4,500
Accounts receivable 2,670
Telephone expense 675
Goodwill 4,000
Accum. Dep’n- computer 1,500
Depreciation expense 100
Salaries payable 210
Purchases 5,000
Prepaid expenses 2,300
Supplies expense 230
Owner’s equity-Dec 31/03 30,000
Accounts payable 2,750
Bank loan payable 8,000
Income Statement
Revenues
Sales 27,000
Net Sales 27 000
Cost of Goods Sold
Inventory- Dec 31/03 6,500
Purchases 5000
Inventory- Dec 31/04 4,500
Cost of Goods Sold 7 000
Gross Profit 20 000
Operating Expenses
General Expenses
Rent expense 1,610
Utilities expense 1,000
Interest expense 1,800
Salary expense 1,050
Supplies expense 230
Depreciation expense 100
Telephone expense 675
Total Expenses 6 465
Net Profit 13 535
Balance Sheet
Assets
Current Assets
Cash 7,950
Accounts receivable 2,670
Marketable securities 7,150
Inventory 4500
Prepaid expenses 2,300
Total Current Assets 24 570
Fixed Assets
Equipment 26,000
Accum. Dep’n- equipment 4,375
Computer 8,000
Accum. Dep’n- computer 1,500
Total Fixed Assets 28 125
Intangible Assets
Goodwill 4,000
Total Assets 56 695
Liabilities and Owners Equity
Current Liabilities
Accounts payable 2,750
Notes payable 6,200.
Salaries payable 210
Total Liabilities 9 160
Long Term Liabilities
Bank loan payable 8,000
Total Liabilities 17 160
Owners Equity
Owner’s equity-Dec 31/03 30,000
+ Net Income 13 535
Less Withdrawals 4000
Total Equity 39 235
Total Liabilities and Owners Equity 56 395
As you can see I am out 300 bucks, but I dont know where or why. I have a feeling I am totally missing something.
And here is the given information that you have to work with:
Notes payable 6,200.
Sales 27,000
Cash 7,950
Salary expense 1,050
Interest expense 1,800
Equipment 26,000
Withdrawal by owner 4,000
Inventory- Dec 31/03 6,500
Marketable securities 7,150
Utilities expense 1,000
Accum. Dep’n- equipment 4,375
Computer 8,000
Rent expense 1,610
Inventory- Dec 31/04 4,500
Accounts receivable 2,670
Telephone expense 675
Goodwill 4,000
Accum. Dep’n- computer 1,500
Depreciation expense 100
Salaries payable 210
Purchases 5,000
Prepaid expenses 2,300
Supplies expense 230
Owner’s equity-Dec 31/03 30,000
Accounts payable 2,750
Bank loan payable 8,000