Preparing Financial Statement
Prepare a Set of Financial Statements
Samson Company adjusted account balances as of December 31, 2005 are as follows (some noted balances are Jan. 1, 2005): Sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000 Purchases . . . . . . . . . . . . . . . . . . . . . . 810,000 Marketable securities . . . . . . . . . . . . . . . . 15,000 Purchase discounts . . . . . . . . . . . . . . . . . 20,000 Purchase returns and allowances . . . . . . . . . . . 2,000 Extraordinary loss due to earthquake, net of applicable taxes of $15,000. . . . . . . . . . . . 35,000 Selling expenses . . . . . . . . . . . . . . . . . . 114,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Accounts receivable . . . . . . . . . . . . . . . . . 60,000 Common stock . . . . . . . . . . . . . . . . . . . . 150,000 Accumulated depreciation . . . . . . . . . . . . . . 42,000 Paid-in-capital in excess of par . . . . . . . . . . 30,000 Inventory, January 1, 2005 . . . . . . . . . . . . . 149,000 Inventory, December 31, 2005 . . . . . . . . . . . . 120,000 Accounts payable . . . . . . . . . . . . . . . . . . 71,000 Salaries payable . . . . . . . . . . . . . . . . . . 5,000 Cash surrender value of life insurance . . . . . . . 22,000 Patents . . . . . . . . . . . . . . . . . . . . . . . 18,000 Retained earnings, January 1, 2005 . . . . . . . . . 60,600 Interest expense . . . . . . . . . . . . . . . . . . 13,000 General and administrative
Samson Company adjusted account balances as of December 31, 2005 are as follows (some noted balances are Jan. 1, 2005): Sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000 Purchases . . . . . . . . . . . . . . . . . . . . . . 810,000 Marketable securities . . . . . . . . . . . . . . . . 15,000 Purchase discounts . . . . . . . . . . . . . . . . . 20,000 Purchase returns and allowances . . . . . . . . . . . 2,000 Extraordinary loss due to earthquake, net of applicable taxes of $15,000. . . . . . . . . . . . 35,000 Selling expenses . . . . . . . . . . . . . . . . . . 114,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Accounts receivable . . . . . . . . . . . . . . . . . 60,000 Common stock . . . . . . . . . . . . . . . . . . . . 150,000 Accumulated depreciation . . . . . . . . . . . . . . 42,000 Paid-in-capital in excess of par . . . . . . . . . . 30,000 Inventory, January 1, 2005 . . . . . . . . . . . . . 149,000 Inventory, December 31, 2005 . . . . . . . . . . . . 120,000 Accounts payable . . . . . . . . . . . . . . . . . . 71,000 Salaries payable . . . . . . . . . . . . . . . . . . 5,000 Cash surrender value of life insurance . . . . . . . 22,000 Patents . . . . . . . . . . . . . . . . . . . . . . . 18,000 Retained earnings, January 1, 2005 . . . . . . . . . 60,600 Interest expense . . . . . . . . . . . . . . . . . . 13,000 General and administrative