60.1K

Verified Solution

Link Copied!

	THE JAMES ISLAND CLOTHING COMPANY
	Worksheet
	12/31/18
	Account Title	Adjusted Trial Balance
		Debit	Credit
	Cash	$95,700
	Accounts Receivable	12,000
	Inventory	4,400
	Office Equipment	26,000
	Truck	18,000
	Accumulated DepreciationPlant Assets		$6,000
	Accounts Payable		5,500
	Note PayableShort Term		10,000
	Note PayableLong Term		33,000
	Common Stock, $10 par, 100,000 shares authorized, 10,000 shares issued & outstanding		100,000
	Retained Earnings
	Dividends	1,000
	Sales Revenue		15,000
	Cost of Goods Sold	3,600
	Rent Expense	2,000
	Advertising Expense	800
	Depreciation Expense	6,000
		$169,500	$169,500
	Transaction Data for 2018 (Note, these transactions were included in the trial balance numbers above.)
	Cash paid for purchase of office equipment	$6,000
	Cash paid for purchase of truck	5,000
	Acquisition of Property, Plant, and Equipment with Notes PayableLong-term	33,000
	Cash payment of dividends	1,000
	Cash receipt from issuance of common stock	100,000
Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.)
Use Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting.
1.	Prepare the James Island Clothing Company multi-step income statement for the six months ended December 31, 2018. Include the EPS at the bottom.
	Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.)
2.	Prepare the James Island Clothing Company balance sheet for the six months ended December 31, 2018. Include a vertical analysis column at the right
	and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.)
3.	Prepare the James Island Clothing Company statement of cash flows for the six months ended December 31, 2018. Use the indirect method.
4.	Complete the analysis of the financial statements as directed on the Analysis sheet.

Answer & Explanation Solved by verified expert

See Answer