Chapter 17 – CRITICAL THINKING EXERCISE: PREPARING FINANCIAL STATEMENTS Assignm

Chapter 17 – CRITICAL THINKING EXERCISE:
PREPARING FINANCIAL STATEMENTS
Assignment Instructions:
As the accountant for Wheatley International, it is your job to prepare the company’s income statement and balance sheet.
Use the accounts listed below to construct the statements. Assume that the tax rate is 25%.
The formula for the balance sheet is assets equal liabilities plus stockholders equity.
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Follow these directions for the Excel Worksheet:
To prepare a balance sheet:
Add the assets and liabilities. The difference between the two is stockholders equity.
For the income statement:
You subtract cost of goods sold from net sales (revenue).
Then you subtract expenses to get gross income.
From that, you subtract the income tax of 25% to get net income.
(Note: The format of these statements may be slightly different from the format taught in students accounting courses. The exact format is less important than understanding the overall concepts.)
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Docucment Submission’s:
Attach a new edited version of the Excel doucment.