Question

4-21 (Algo) Reporting an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO4-2 Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Debit Credit Cash 18 Accounts receivable 15 Prepaid insurance 10 Machinery 77 Accumulated depreciation Accounts payable 11 Wages payable Income taxes payable Common stock (8,000 shares) 8 Additional paid-in capital 57 Retained earnings 9 Revenues (not detailed) 78 Expenses (not detailed) 25 Totals 154 154 Other data not yet recorded at December 31 include

Answer 1

Income statement

revenue 78000

expenses (25000 )

insurance (7000 )

depreciation (9000 )

EBIT 37000

TAX (11000)

net income 26000

EPS 3.25

STATEMENT OF STOCKHOLDER'S EQUITY

Common stock retained earnings additional paid in capital

opening 8000 9000 57000

net income 26000

closing 8000 35000 57000

BALANCE SHEET

assets

non current assets 154000

machinery 77000

accum depreciation (20000)

carrying value 57000

current assets 36000

prepaid insurance 3000

cash 18000

accounts receivables 15000

total assets 190000

Equity and liabilities

stockholdr's equity 100000

common stock 8000

Retaine earnings 35000

paid in capital 57000

Liabilities 90000

current liabilities 90000

Accounts payable 11000

wagages payable 4000

income tax payable 75000 balancing figure

Step-by-step explanation:

missing information;

Other data not yet recorded at December 31 include:

Insurance expired during the current year, $7.

Wages payable, $4.

Depreciation expense for the current year, $9.

Income tax expense, $11.

Required:

1. Using the adjusted balances, prepare an income statement for the current year. (Round "Earnings per share" to 2 decimal places. Enter your answers in thousands.)

2. Using the adjusted balances, prepare statement of stockholders’ equity for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

3. Using the adjusted balances, prepare balance sheet for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)