# Prepare the balance sheet for ABCC on December 31, 2011; December 31, 2012; and December 31, 2013.

ABC Corporation (ABCC) started business on December 10 2011 by issuing 100 shares of \$100 stock for \$10,000. At the same time ABCCissued \$15,000 in two-year bonds with a 5% interest rate (coupon rate per annum). ABCCdecided to produce wooden tables. To do that, on December 15 2011, ABCC bought a wood cutting machine tool for \$7,000 with a five-year life span. Each table uses 20 sq. feet of wood. It costs \$50 of labor to produce a table. SG&A expenses are \$800 a year. ABCCsells each table for \$60. 1. On December 15 2011, ABCC bought 50,000 sq. feet of wood. Each sq. foot of wood cost the company \$0.35. For 45,000 sq. feet the company paid immediately, and for the remaining 5,000 sq. feet, the company paid during the following year. 2. During the first year, January 1 2012 “ December 31 2012, ABCC produced 2,000 tables. ABCC was able to sell 1,980 tables during the first year. The payment for 1,900 tables was received immediately, and for 80 tables during the following year. 3. During the second year, January 1 2013 “ December 31 2013, RFC bought 40,000 sq. feet of wood. Each sq. foot of wood cost the company \$0.35. The company paid immediately for all wood during that year. During the second year, RFC produced 2,020 tables.ABCC was able to sell 2,030 tables during that year. The payment for 2,000 tables was received immediately, and for 30 tables during the following year. ABCCuses the straight-line depreciation method. The corporate tax rate is 34%.Taxes are paid during the following fiscal year.At the end of each year, investors decided to reinvest 50% of earnings and use the rest to pay a cash dividend. Prepare the balance sheet for ABCC on December 31, 2011; December 31, 2012; and December 31, 2013. Prepare the income statement for ABCC for the first and the second years. Prepare the statement of cash flow for ABCC for the first and second years. Place your order now for a similar paper and have exceptional work written by our team of experts to guarantee you A Results Why Choose US 6+ years experience on custom writing 80% Return Client Urgent 2 Hrs Delivery Your Privacy Guaranteed Unlimited Free Revisions