This is a case that I would like from you to solve. it is about an accounting but I would to follow the instructions precisely by linking the transactions with the balance sheet and the income statement, so any change in one of them will be reflected in the other.
Here are some check figures for the Dow Chemical case
Net Income Available for the Dow Chemical Common Stockholders, $247.
Income before income taxes, $1,070
Retained earnings, $17,040
Total assets, $68,135
Please refer to the 2012 Annual Report (in this case it is a combination of a corporate annual report and 10-k (a 10-k is the formal report filed annually with the Securities and Exchange Commission, which includes a full set of financial statements)) for Dow Chemical.
You will be using the
Consolidated Statements of Income (income statement) on page 69, the retained earnings portion of the Consolidated Statements of Equity (page 73) and the Consolidated Balance Sheets (page 71) for the year ended 2012. On the following worksheets in this workbook I have prepared the income statement, statement of retained earnings, and balance sheet, but have not entered balances. Enter the balances, with excel formulas for all totals and subtotals, and then create transaction columns for each of the transactions below. Create a "Revised" column showing the revised totals after entering the transactions. Sum and copy numbers across the worksheet such that financial statements update appropriately for each transaction recorded. Remember to link net income from the income statement to the statement of retained earnings, and remember to link numbers from the statement of retained earnings to retained earnings on the balance sheet such that any change in retained earnings will update appropriately on the balance sheet. Lastly, format your work properly, no page breaks running through the analyses, use proper number formatting and alignment, etc.
Amounts are in $millions
1 Purchased inventories on account, $1,100.
2 Sales, on account, $3,200, cost of items sold $900, terms 4/10, n/30.
3 Sales were returned to Dow, sales price $300, cost $100. These items were returned to inventory. Cash was refunded.
4 Collections on accounts receivable, $3,900.
5 Purchased properties (buildings, etc.), $43. Paid $8 cash and the rest was financed with long-term debt.
6 Paid wages, $280.
7 Depreciation is recorded on property, $3,650.
8 Interest incomes earned on investments, received in cash, $65.
9 Sold other investments. The cost of the investments was $902; they were sold for $1,100. Cash was received.
10 Paid more dividends to shareholders, $860.
11 Cash was collected for the sales made in #2 above. Cash was collected within the 10 day discount period.
12 Made payments on interest bearing debt. Payments totaled $400, which included interest of $150.
13 Sold additional common stock to shareholders, $900.
14 Made payments on accounts payable, $1,800 cash.
15 Sales for cash, $1,900, cost of items sold was $650.