Prepare a Set of Financial Statements

Samson Company adjusted account balances as of December 31, 2005 are as follows (some
noted balances are Jan. 1, 2005):

Sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000
Purchases . . . . . . . . . . . . . . . . . . . . . . 810,000
Marketable securities . . . . . . . . . . . . . . . . 15,000
Purchase discounts . . . . . . . . . . . . . . . . . 20,000
Purchase returns and allowances . . . . . . . . . . . 2,000
Extraordinary loss due to earthquake, net of
applicable taxes of $15,000. . . . . . . . . . . . 35,000
Selling expenses . . . . . . . . . . . . . . . . . . 114,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Accounts receivable . . . . . . . . . . . . . . . . . 60,000
Common stock . . . . . . . . . . . . . . . . . . . . 150,000
Accumulated depreciation . . . . . . . . . . . . . . 42,000
Paid-in-capital in excess of par . . . . . . . . . . 30,000
Inventory, January 1, 2005 . . . . . . . . . . . . . 149,000
Inventory, December 31, 2005 . . . . . . . . . . . . 120,000
Accounts payable . . . . . . . . . . . . . . . . . . 71,000
Salaries payable . . . . . . . . . . . . . . . . . . 5,000
Cash surrender value of life insurance . . . . . . . 22,000
Patents . . . . . . . . . . . . . . . . . . . . . . . 18,000
Retained earnings, January 1, 2005 . . . . . . . . . 60,600
Interest expense . . . . . . . . . . . . . . . . . . 13,000
General and administrative expenses . . . . . . . . . 160,000
Dividend revenue. . . . . . . . . . . . . . . . . . . 6,000
Allowance for doubtful accounts . . . . . . . . . . . 3,000
Notes payable (maturity 7/1/07) . . . . . . . . . . . 105,000
Machinery and equipment . . . . . . . . . . . . . . . 150,000
Income tax expense . . . . . . . . . . . . . . . . . 30,600
Treasury stock . . . . . . . . . . . . . . . . . . . 10,000
Dividends declared and paid . . . . . . . . . . . . . 18,000

Prepare multi-step income statement:

Samson Company
Income Statement
For the Year Ended December 31, 2005

Sales $1,200,000

Cost of Goods Sold:

Beginning inventory $149,000

Purchases $810,000
Purchase discounts ( 20,000)
Purchase returns and
allowances ( 2,000)
-------
Net purchases 788,000
 -------
Goods available for sale 937,000
Ending inventory 120,000
-------
Cost of goods sold 817,000
---------
Gross profit 383,000

Operating expenses:
Selling expenses 114,000
General and administrative expenses 160,000
-------
Total operating expenses 274,000
---------
Operating income 109,000

Other income (expense):

Dividend revenue 6,000
Interest expense ( 13,000)
-------
Total other income (expense) ( 7,000)
---------

Income before income taxes 102,000

Income taxes 30,600

---------

Income before extraordinary item 71,400

Extraordinary loss due to earthquake,

net of applicable taxes of $15,000 ( 35,000)

--------
Net income $36,400
========

Prepare a Statement of Retained Earnings:

Samson Company
Statement of Retained Earnings
For the Year Ended December 31, 2005

Retained earnings, January 1, 2005 $60,600

Plus net income 36,400

Less dividends ( 18,000)

-------
Retained earnings, December 31, 2005 79,000
=======

Prepare a classified Balance Sheet:

Samson Company
Balance Sheet
December 31, 2005
 Assets
Current Assets:
Cash $ 90,000
Marketable securities 15,000
Accounts receivable $ 60,000
Less allowance for doubtful accounts ( 3,000)
-------
57,000
Inventories 120,000
--------
Total Current Assets 282,000

Property, Plant, and Equipment

Machinery and Equipment $150,000
Less accumulated depreciation ( 42,000)
--------
Total Property, Plant, and Equipment 108,000

Other Assets:
Cash surrender value of life insurance $ 22,000
Patents 18,000
-------
Total Other Assets 40,000
-------
Total Assets $430,000
========

Liabilities and Stockholders' Equity

Liabilities:
Current Liabilities:
Accounts payable $ 71,000
Salaries payable 5,000
-------
Total Current Liabilities 76,000

Long-term Liabilities
Notes payable 105,000
-------
Total Liabilities 181,000

Stockholders' Equity:
Common stock $150,000
Paid-in-capital in excess of par 30,000
Retained earnings 79,000
Treasury stock ( 10,000)
-------
Total Stockholders' Equity 249,000
-------
Total Liabilities and Stockholders' Equity $430,000
========
Problem :Pavaker consultancy limited has the following trial balance and other relevant information as
on the year ended 31 December 2015.

Pavaker Consultancy Limited

Trial Balance

December 31,2015

Name of accounts Debit in amounts taka Credit in amount taka

Cash 123400
Accounts receivable 85000
Accounts Payable 84600
Consultancy revenue 229400
Unearned consultancy revenue 36000
Salaries expense 23000
Rent income 9500
Prepaid rent 17200
Prepaid insurance 18200
supplies 8400
Calls in arrear 1400
Common stock 100000
Retained earning 343000
General reserve 40000
Dividend paid 31600
Interim dividend 4300
Furniture and equipment 180000
Land and building 350000
total 842,500 842500
Other information

1. Salaries incurred but not paid taka 7,500.

2. Provide income tax taka 5000 on net income
3. The directors declared 10% dividend on paid up capital .the interim dividend will be inclusive
with this dividend.
4. Rent income includes taka 2500 which has not been earned yet.
5. Charge depreciation @5% on furniture and equipment and 2% on land and building.
6. Unearned consultancy revenue was received and recorded on august 1.2015 for the coverage of
two years.
7. Service provided but unbilled taka 12500.

Required :Prepare Financial statement under worksheet format