The Software Corporation has been operating for three years. The December 31, 2012 account balances are:
| Cash | $84,000 | Accounts Payable | $13,000 | |
| Accounts Receivable | 78,000 | Salaries Payable | 15,000 | |
| Inventory | 5,400 | Notes Payable (long-term) | 36,000 | |
| Office Supplies | 21,000 | Contributed Capital | 210,000 | |
| Equipment | 110,000 | Retained Earnings | 104,400 | |
| Building | 80,000 |
During the year 2013, the company had the following activities (note none of these activities should impact the income statement, only the balance sheet):
Applied for and received a $37,000 loan from the city, payable in three years.
Purchased additional equipment costing $48,000; paying $17,000 cash and signing a promissory note to pay the balance in two years.
Bought additional inventory for $14,000 on account.
Issued additional shares of stock, receiving $60,000 cash.
Collected $35,000 cash on open accounts receivable from customers.
Paid off $12,000 of notes payable a year early.
Hired a new CEO on the last day of the year. The contract was for $150,000 for each full year worked.
Returned $1,900 of defective inventory to the manufacturer, receiving a cash refund.
Paid $23,000 of Accounts Payable.
Paid $5,000 of Salaries Payable
Q1. Prepare a trial balance (see page 64 in textbook). Be sure to use the sum function in Excel to sum up your debit column and your credit column.
Q2. Prepare a classified balance sheet including year-end balances for 2012 and 2013 (see page 65 in textbook). Use the sum function i
Trial Balance for the yrar ended 2013
| Particular | debit | credit |
| cash | 1239,00 | |
| Account receivable | 43,000 | |
| inventory | 17,500 | |
| office supplies | 21,000 | |
| Equipment | 158,000 | |
| Building | 80,000 | |
| Bank Balance (loan Received) | 37,000 | |
| Salary Payable | 10,000 | |
| Notes payable | 55,000 | |
| Loan Payable | 37,000 | |
| Contributed capital | 270,000 | |
| Retained earning | 104,400 | |
| Accounts Payable | 4,000 | |
| Total | 480 |
Balance sheet for the year ended 2012 and 2013
| Particular | 2012 | 2013 |
| Assets | ||
| Cash | 84,000 | 123,900 |
| Accounts Receivable | 78,000 | 43,000 |
| Inventory | 5,400 | 17,500 |
| Office supplies | 21,000 | 21,000 |
| Bank balance (Loan received ) | 37,000 | |
| Equipment | 110,000 | 158,000 |
| Building | 80,000 | 80,00 |
| 378,400 | 480,400 | |
| Libelity | ||
| Salary pable | 15,000 | 10,000 |
| Accounts Payable | 13,000 | 4,000 |
| Notes Payable in long term | 36,000 | 55,000 |
| Loan | 37,000 | |
| Contributed Capital | 210,000 | 270,000 |
| Retained earning | 104,400 | 104,400 |
| Total | 378,400 | 480,400 |
Working Notes
Cash Balance
Opeaning 84000+60000+35000+1900-17000-12000-23000-5000 =123,900
Promessory Notes
Opening Balance 36000+31000-12000 =55,000
Equipment
Opening Bal 110,000+48000 =158,000
