STOCHOS INC. STATEMENT of FINANCIAL POISTION June 30, 2018 ASSETS LIABILITIES Cash $222,000 Accounts Payable $150,000 Accounts Rec. 58,000 Mortgage Payable 500,000 Inventory 4,000 Supplies 6,000 TOTAL LIABILITIES $650,000 Land 210,000 Buildings $900,000 STOCKHOLDER EQUITY Acc. Depr. <200,000> 700,000 Equipment 260,000 Common Stock...

60.1K

Verified Solution

Question

Accounting

STOCHOSINC.
STATEMENT of FINANCIALPOISTION
June 30, 2018
ASSETS                                                    LIABILITIES
Cash                              $222,000            Accounts Payable               $150,000
AccountsRec.                   58,000            Mortgage Payable                 500,000
Inventory                            4,000
Supplies                               6,000             TOTAL LIABILITIES                   $650,000
Land                                 210,000
Buildings     $900,000                               STOCKHOLDER EQUITY
    Acc. Depr. <200,000>700,000
Equipment       260,000                            Common Stock $5 Par      $500,000
    Acc. Depr    <60,000>200,000             Excess                                $100,000
                                                                    RetainedEarnings              $150,000
                                                                    TOTALEQUITY                           $750,000
TOTAL ASSETS     $1,400,000           TOTAL LIAB. &EQUITY        $1,400,000
July 1 Sold 220,000 shares of common stock for $6,600,000.
July 3 Purchased on account $100,000 of inventory for resale tocustomers.
July 5   Purchased a 2-year insurance policy for$4,800 in cash. Effective date is July 1.
July 7   Paid cash for $100,000 in inventory acquiredJuly 3.
July 10 Sales revenue generated was $400,000. Cash received thisdate was $75,000 the
            balance would be received later in the year.
July 30 Paid $40,000 in wages for the month of July.

July 30 Acquired $800,000 of equipment. Useful life is 10 years.Signed a note (12%)
            for the full amount.
July 31 Paid $20,000 July monthly mortgage payment. The rate ofinterest on this
            mortgage is 7 per cent.
Aug. 1 Stochos declared a dividend of $1 per share. Shareholderswho owned shares on
          August 15 would be paid the dividends in October.
Aug. 9 Stochos borrowed $180,000, and signed a note for thisamount at 11 per cent.
Aug. 15 Customers returned $80,000 of items they acquired onJuly 10.
Aug. 18 Stochos sold 100,000 shares for $80 per share.
Aug. 30 Paid August wages – the $40,000 was paid in cash.
Aug. 31 Paid the August mortgage payment of $20,000.
Aug. 30 Paid $30,000 on the equipment note entered into on July30 of this year.
Aug. 30 Received full amount due from the July 10 sale.
Sept. 30 Supply inventory valued at $200.
Sept. 30 Sales on account to customers amounted to $135,000.Stochos Inc. received
               $33,000 in cash on this date from customers.
Sept. 30 Wages were accrued this day in the amount of $40,000.Stochos Inc. informed
              their employee that their checks would be available October5^th.
OTHER INFORMATION
1. Tax rate is 20%.
2. Building has a 20-year useful life from date of purchase.
3. All equipment has a useful life of ten years.
4. Inventory at the end of the quarter was $10,000.
PREPARE THE FOLLOWING:
INCOME STATEMENT
STATEMENT OF RETAINED EARNINGS
STATEMENT OF FINANCIAL POSTION [AKA] BALANCESHEET

Answer & Explanation Solved by verified expert

4.0 Ratings (789 Votes)

1 Stochos Inc Income Statement For the period ended September 30 2018 Sales Revenue 488000 Cost of Goods Sold 94000 Gross Profit 394000 Operating Expenses Wages Expense 120000 Supplies Expense 5800 Insurance Expense 600 Depreciation Expense Building 11250 Depreciation Expense Equipment 19833 Interest Expense 27091 Total Operating Expenses 184574 Earnings See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member