Transfer the net income from the income statement in Task 1 to retained earnings, and create
a balance sheet in the given format with the following additional information for the year
ending December 31, 2012.
Particulars
Accounts payable 39,000
Accrued expenses 18,00
Accumulated depreciation 65,000
Additional paid-in capital 164,000
Allowance for doubtful accounts 5,00
Cash 25,000
Common stock ($0.20 par) 45,000
Current portion of long-term debt 6,000
Gross accounts receivable 45,000
Gross fixed assets 500,000
Inventories 50,000
Prepaid expenses 384,000
Long-term debt 200,000
Net accounts receivable 40,000
Net fixed assets 435,000
Retained earnings 60,000
Short-term bank loan (notes
payable) 18,000
