can someone please check to see if I did my accounting financial statements correctly. I DID THE WORK.?

Question

I have already done the work but I am not 100% sure if I did all of it correctly. I would greatly appreciate it if you could look over my work and give me any advice on what I did right or wrong. This is my first accounting class and I am hoping to fully understand my mistakes so I can continue onto the next chapters. I had to create an Income Statement, Balance sheet, and Retained Earnings. Also, is there a way for me to check to see if my numbers add up to make sure I am doing it correctly? Thanks again in advance for any help that I can get it.

Info given:

Sally Company
(credits shown in brackets)

Accounts Payable	 (35,000.00)
Accounts Receivable	 55,000.00 
Accumulated Depr:  Equipment	 (15,000.00)
Accrued Wages	 (10,000.00)
Advertising Expense	 8,525.00 
Cash	 19,025.00 
Common Stock	 (40,000.00)
Cost of Goods Sold	 329,700.00 
Depreciation Expense	 18,000.00 
Delivery Expense	 3,500.00 
Equipment	 95,000.00 
Inventory	 41,000.00 
Notes Payable (120 day note)	 (35,000.00)
Notes Receivable (90 day note)	 15,000.00 
Prepaid Insurance	 10,000.00 
Retained Earnings	 (57,000.00)
Salaries Expense	 97,500.00 
Sales (Revenue)	 (602,000.00)
Supplies	 65,000.00 
Supplies Expense	 3,750.00 
Travel Expense	 17,500.00 
Utilities Expense	 15,500.00

MY WORK:

Sally Company
Income Statement				
For Month Ended October 31, 2013				
Revenues				
Sales revenue			 $(602,000.00)	
Cost of goods sold		 327,700.00 		
Gross profit			 (274,300.00)	
Expense				
Salaries Expense		 $97,500.00 		
Depreciation Expense		 18,000.00 		
Travel Expense		 17,500.00 		
Utilities Expense		 15,500.00 		
Advertising Expense		 8,525.00 		
Supplies Expense		 3,750.00 		
Delivery Expense		 3,500.00 		
Total Expense			 $164,275.00 	
Net Income			 $(110,025.00)	
				
Sally Company 				
Balance Sheet				
October 31 ,2013				
				
Assets				
Cash			 $19,025.00 	
Accounts Receivable			 55,000.00 	
Notes Receivable			 15,000.00 	
Supplies			 65,000.00 	
Accumulated Depr: Equipment			 (15,000.00)	
Prepaid Insurance			 10,000.00 	
Equipment			 95,000.00 	
Inventory			 41,000.00 	
Total Assets			 $285,025.00 	
Liabilities and Owner's Equity				
Liabilities				
Notes Payable			 $(35,000.00)	
Accounts Payable			 (35,000.00)	
Accrued Wages			 (10,000.00)	
Total liabilities			 $(80,000.00)	
Stockholder's equity				
Common stock			 $(40,000.00)	
Retained Earnings			 (57,000.00)	
Total Stockholders Equity			 $(97,000.00)	
				
Sally Company 				
Statement of Retained Earnings				
For the Year Ending October 31, 2013				
Retained Earnings, October 1, 2013			0	
Plus: Net Income			 $(110,025.00)	
			 $(110,025.00)	
Less: Dividends			 (40,000.00)	
Retained Earnings- October 31, 2013			 $(70,025.00)

Don G · Accepted Answer

Not bad, but your Assets of 285,025 don't equal Liabilities of 80,000 and Equity of 97,000.

But first, you used 327,700 for COGS, not the correct amount of 329,700. As a result, your Net Income is wrong. Should be 108,025.

A Balance Sheet must always start with Current Assets, then Fixed Assets less Accum Depr. But your total Assets is correct, and so is Liabilities. Your check number then is that Equity must be 285,025 less 80,000, or 205,025, not 97,000.

Where did the 40,000 Dividends come from?

Retained Earnings should be: Beg Bal 57,000 + 108,025 = 165,025.Total Equity then included R/E + 40,000 Common Stock for a total of 205,025.

One last point. Omit brackets from all financial statements, unless it is really a subtraction. See a published financial statement for an example.

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can someone please check to see if I did my accounting financial statements correctly. I DID THE WORK.?

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