The partially completed 2010 balance sheet and income statement for Nassau Corp. follows:

Nassau Corporation Balance Sheet December 31, 2010
Assets	Â	Â	Â
Current Assets	Â	Â	Â
Cash	Â	$ 38,000	Â
Accounts Receivable	(A1)	Â	Â
Less: Allowance for Doubtful Accounts	(A2)	(A3)	Â
Inventory	Â	(B1)	Â
Total Current Assets	Â	Â	(D1)
Property, Plant & Equipment	Â	Â	Â
Land	Â	(C1)	Â
Building	(C2)	Â	Â
Less: Accumulated Depreciation	$ 15,300	(C3)	Â
Equipment	$ 72,000	Â	Â
Less: Accumulated Depreciation	(D2)	$ 36,000	Â
Total Property, Plant & Equipment	Â	Â	(D3)
Total Assets	Â	Â	$ 495,200
Â	Â	Â	Â
Liabilities	Â	Â	Â
Current Liabilities	Â	Â	Â
Accounts Payable	Â	$ 37,300	Â
Interest Payable	Â	14,500	Â
Total Current Liabilities	Â	Â	(D4)
Long-Term Liabilities	Â	Â	Â
Mortgage payable	Â	Â	(D5)
Total Liabilities	Â	Â	$ 271,800
Â	Â	Â	Â
Stockholders’ Equity	Â	Â	Â
Common Stock	Â	$ 30,000	Â
Retained Earnings	Â	(D6)	Â
Total Stockholders’ Equity	Â	Â	$(D7)
Total Liabilities and Stockholders’ Equity	Â	Â	$(D8)

 

 

Nassau Corporation Income Statement For the year ended December 31, 2010
Sales	Â	$ 358,000
Cost of Goods Sold	Â	(B2) $180,000
Gross Profit	Â	$ 178,000
Operating Expenses	Â	Â
Selling Expenses	$(D9)	Â
Administrative Expenses	74,000	Â
Total Operating Expenses	Â	$(D10)
Income before Income Taxes	Â	$ 75,000
Income Tax Expense (20%)	Â	(D11)
Net Income	Â	$ (D12)

 

 

 

 

 

 

 

 

 

 

 

 

 

ALL COMPUTATIONS MUST BE CLEARLY SHOWN.

 

1. Nassau Corporation’s accounts receivable balance is $40,000. Of this amount, $34,000 is current and $ 6,000 is past due. From experience, Nassau expects it will collect 95% of the current accounts and 70% of the past due accounts. Compute Nassau’s:

(A1) Accounts receivable

 

 

(A2) Allowance for Doubtful Accounts

 

 

 

(A3) Net realizable value of accounts receivable

 

 

 

 

1. Nassau Corporation uses a periodic inventory system and the weighted-average cost flow assumption to account for ending inventory and cost of goods sold. During the year, Nassau sold 45.000 units. The following information pertains to their inventory records.

 

Â	Quantity in units	Cost per unit	Total cost
Beginning inventory	20,000	$ 2.50	Â
Purchase #1	25,000	4.00	Â
Purchase #2	15,000	6.00	Â
Available for sale	Â	Â	Â
Units sold	45,000	Â	Â
Units in ending inventory	Â	Â	Â

 

B1(Balance Sheet) - Ending Inventory _______________________

 

 

B2 (Income Statement) - Cost of Goods Sold _______________________

1. (C1-C3)

Nassau purchases new land and a building this year for $340,000. Of this amount, the value of the land was $34,000 and the value of the building was $306,000 at the time of purchase. $15,300 depreciation was recorded on the building this year.

 

 

 

 

1. (D1-D12)

Once the above amounts have been computed, determine:

D1. Total Current Assets

 

 

 

 

 

D2. Accumulated Depreciation - Equipment

 

 

 

 

D3. Total Property, Plant & Equipment

 

 

 

 

D4. Total Current Liabilities

 

 

 

D5. Mortgage Payable

 

 

 

 

D6. Retained Earnings

 

 

 

 

D7. Total Stockholders’ Equity

 

D8. Total Liabilities & Stockholders’ Equity

 

 

 

D9. Selling Expenses

 

 

 

 

D10. Total Operating Expenses

 

 

 

D11. Income Tax Expense

 

 

 

D12. Net Income