Posted: July 19th, 2016

Prepare revised income statements and balance sheets for Planter Stores for each of the two years?

Cost of goods sold 12,594 9,912
Gross profit $23,388 $16,978
Operating expenses 13,488 10,578
Net income $9,900 $6,400

Balance Sheets December 31, 2012 December 31, 2011
Cash $9,400 $4,100
Inventory 4,500 5,400
Other current assets 1,600 1,250
Long-term assets, net 24,500 24,600
Total assets $40,000 $35,350

Current liabilities 9,380 10,600
Capital stock 18,000 18,000
Retained earnings 12,620 6,750
Total liabilities and stockholders’ equity $40,000 $35,350

Before releasing the 2012 annual report, Planter’s controller learns that the inventory of one of the stores (amounting to $500,000) was counted twice in the December 31, 2011, inventory. The inventory was correctly counted in the December 31, 2012 inventory.

1. Prepare revised income statements and balance sheets for Planter Stores for each of the two years. Ignore the effect of income taxes.

PROBLEM 6-1 Bank Reconciliation

The following information is available to assist you in preparing a bank reconciliation for Calico Corners on May 31, 2012:

a. The balance on the May 31, 2012, bank statement is $8,432.11.

b. Not included on the bank statement is a $1,250 deposit made by Calico Corners late on May 31.

c. A comparison between the canceled checks returned with the bank statement and the company records indicated that the following checks are outstanding at May 31: