Foundations of Accounting Assignment -
Once you have completed the assignment below, you must submit your answers using the answer sheet provided in Canvas (in the Assignments module); not all answers will be turned in. Once submitted, your answers cannot be changed. Where appropriate, partial credit will be given.
Pinnacle Incorporated was founded on January 1, 2012; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative two-year report appears below; unless otherwise noted, all numbers are as of December 31st for each year.
|
2014
|
2013
|
|
Accounts payable
|
124,610
|
120,890
|
|
Accounts receivable
|
20,812
|
14,388
|
|
Capital
|
263,128
|
?
|
|
Cash
|
13,010
|
41,788
|
|
Cost of Goods Sold
|
208,902
|
197,732
|
|
Dividends
|
3,632
|
5,880
|
|
Income tax expense
|
?
|
936
|
|
Inventory
|
?
|
100,082
|
|
Notes payable
|
252,160
|
263,270
|
|
Property, plant and equipment
|
570,520
|
525,160
|
|
Retained earnings, Jan. 1
|
?
|
45,238
|
|
Retained earnings, Dec. 31
|
61,686
|
53,620
|
|
Revenues
|
257,908
|
252,568
|
|
Selling and administrative expenses
|
36,122
|
39,638
|
Required:
a) Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values.
b) Determine the dollar amount of Property, plant and equipment that must have been purchased during 2014.
c) Review and assess the company's completed financial statements then comment on it's operational success (i.e. income statement) and financial position (i.e. balance sheet).