Perform these two problems in Excel. Balance Sheet and Income Statement. Following information is used for first two problems. Problem 1 is an income statement and problem 2 is a balance sheet.
Coffin Corporation had the following highly summarized financial events during the present year:
1. Jan. 2: Ordered new equipment with a 10-year life, for $80,000. No payment was made and the equipment has not been delivered.
2. Feb. 19: Bought $35,000 of inventory. Only $20,000 was paid for the inventory on that date, and the balance is owed to the suppliers. Coffin expects to be able to sell the inventory for $60,000.
3. July 12: Received equipment ordered on January 2, and mailed the check for the balance due.
4. Dec. 28: Coffin paid its employees $68,000 of wages. Wage expense for the year is $66,000. Payment included the $2,000 wages payable balance outstanding from the previous year plus some payment for work done this year.
5. Dec. 30: Sales for the year totaled $123,000. All but $3,000 of that amount has been collected. The entire $6,000 balance in accounts receivable from beginning of the year was also collected. The cost of the books and posters sold was $32,000.
6. Dec. 31: Coffin makes a payment of $34,000 on its long-term note. This is an interest free business development loan.
7. Dec. 31: Coffin's building and equipment are now one year older. Depreciation for the year is $15,000.
Suppose that Coffin began the year with the following balances (shown in alphabetical order) in their accounts at the beginning of the year:
Accounts Payable $ 2,000
Accounts Receivable 6,000
Equipment, Net 150,000
Notes Payable 150,000
Contributed Capital 30,000
Retained Earnings 52,000
Wages Payable 2,000
1) Prepare the income statement.
2) Prepare A comparative statement of financial position (balance sheet).