NAME ______________________________ Date ________ Activity 2 PREPARING FINANCIAL STATEMENTS Objectives : 1. Arrange the given items to prepare the Financial Statement 2. Prepare the Balance sheet and Income statement Instruction : Given is the balance of the books of FAR , Inc. for the period ending December 20X0 Prepare the Balance sheet and Income statement in proper format using the worksheet given below . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Particulars Sales person Salary expense Depreciation Expense Allowance for Bad debts Plant and Equipment Revenue Cash Payables Cost of Good sold Bad Debts expense Long term Loan Administrative Expense Accumulated depreciation Plant and equipment Receivables Goodwill Capital Inventory Retained earnings Amount 20 40 10 450 300 40 40 90 10 70 50 120 50 60 300 30 90 BALANCE SHEET WORKSHEET (20 PTS ) Asset Liabilities Owners Equity INCOME STATEMENT WORKSHEET (10 PTS)