acc403 slp2This SLP has two separate parts. We are using the same company as in the first module. However, you need to consider some additional information.Smith Company31-Dec-15Trial Balance (accounts in alphabetical order)DebitCreditAccounts payable67,000Accounts receivable24,500Cash50,000Common stock10,000Depreciation expense24,350Cost of goods sold234,000Equipment (net of depreciation)316,000Insurance1,400Inventory25,000Long-term debt145,000Marketing4,500Paid-in capital90,000Property taxes8,900Rent18,000Retained earnings?Revenues436,000Salaries67,500Utilities6,700Total780,850780,850Part I: Income StatementFor Part I, consider additional information below.One client had indicated that they were interested in purchasing $50,000 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase.The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2015 and did not adjust ending inventory for the $50,000 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.Prepare an income statement for the company in good format. Also, explain the adjustments separately. Always include the name of the company and the period covered in the title. Don’t forget dollar signs where appropriate. You will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept.

Part II: Balance SheetFor Part II, consider additional information below. You also need to consider additional information of Part I above.Additional information for Part II:The company made a secondary offering of stock and raised an additional $250,000 which includes $225,000 of Paid-in Capital.The company had already paid $22,000 in dividends before deciding on the offering.The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $40,000 and a note to the bank covers the rest.Prepare a balance sheet for the company in good format with additional information above. Update the balance sheet for the changes to income in Part I and also consider the effect of paying the dividend.PAPER FORMAT AS FOLLOWS:Set 1-inch margins on all four sides.Use 12-point type throughout; dont use different type sizes.Double-space the text throughout the paper, including the reference page.Do not put extra spaces between paragraphs or between headings and paragraphs.Use italics or bold for emphasis, but use them sparingly or it becomes too distracting for your readerMust have in-text citationsMust have references!!!GRAMMAR IS PARAMOUNTASSIGNMENT EXPECTATIONS:It is important to answer the questions as posed. The document should be two to four pages and written in a clear and concise manner or present tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead. The content should be equivalent to the page length suggested for a word processing document.acc403 slp2This SLP has two separate parts. We are using the same company as in the first module. However, you need to consider some additional information.Smith Company31-Dec-15Trial Balance (accounts in alphabetical order)DebitCreditAccounts payable67,000Accounts receivable24,500Cash50,000Common stock10,000Depreciation expense24,350Cost of goods sold234,000Equipment (net of depreciation)316,000Insurance1,400Inventory25,000Long-term debt145,000Marketing4,500Paid-in capital90,000Property taxes8,900Rent18,000Retained earnings?Revenues436,000Salaries67,500Utilities6,700Total780,850780,850Part I: Income StatementFor Part I, consider additional information below.Prepare an income statement for the company in good format. Also, explain the adjustments separately. Always include the name of the company and the period covered in the title. Don’t forget dollar signs where appropriate. You will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept.Part II: Balance SheetFor Part II, consider additional information below. You also need to consider additional information of Part I above.Additional information for Part II:Prepare a balance sheet for the company in good format with additional information above. Update the balance sheet for the changes to income in Part I and also consider the effect of paying the dividend.PAPER FORMAT AS FOLLOWS:Set 1-inch margins on all four sides.Use 12-point type throughout; dont use different type sizes.Double-space the text throughout the paper, including the reference page.Do not put extra spaces between paragraphs or between headings and paragraphs.Use italics or bold for emphasis, but use them sparingly or it becomes too distracting for your readerMust have in-text citationsMust have references!!!GRAMMAR IS PARAMOUNTASSIGNMENT EXPECTATIONS:It is important to answer the questions as posed. The document should be two to four pages and written in a clear and concise manner or present tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead. The content should be equivalent to the page length suggested for a word processing document.