please help me with this accounting problem!! preparing the balance sheet.?
the question is shown below:
A company was started by owner early in 2006. initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. the owner presents you with the following info for the year ending dec. 31, 2006:
1 cash receipts consisted of the following
from customers 360,000 from issue of common stock 100,000 from bank loan 100,000
2 cash disbursements were as follows
purchase of inventory 300,000 rent 15,000 salaries 30,000 utilities 5,000 insurance 3,000 purchase of equipment and furniture 40,000
3 the bank loan was made on mar. 31, 2006 a note was signed requiring payment of interest and principal on march 31, 2007. the interest rate is 12%.
4 the equipment and furniture were purchased on jan. 3, 2006, and have an estimated life of 10 years. depreciation per year is 4,000
5 amount owed to supplier of inventory 20,000 and utility company 1,000
6 rent is 1000 per month dec. 1,2006 4 months rent was paid in advance
7 net income for the year was 76,000. assume that the company is not subject to federal, state, or local income tax.
prepare a balance sheet at dec. 31, 2006
should i use the net income information to get the ending inventory??
the following info was in the question that i missed
8 the inventories on hand at the end of the year cost 100,000