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ID: 2399840 • Letter: I
Question
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Please prepare following by using the information in the picture.
Prepare income statement
Schedule M-1
Statement of comprehensive income.
Statement of owner’s equity
Balance sheet
Statement of cash flow
You have been hired by Number Company as a staff accountant. Your first assignment is to produce financial statements for Alphabetical Company. You must produc balance sheet for both years, and a statement of the statement of cash flows and disclose the direct method separtately. Additionally, please refer to the rubric attached to this assignment for additional grading components and information required in submission. e the income statement, statement of owners' equity and cash flows for only 20X2. Use the indirect method in the body of Please note that the company: 1. Issued stock in 20X2, but did not in 20x1. 2. Paid its 20x1 tax liability in full in 20X2 Tax rate Deferred tax payable-Depreciation at Dec. 31, 20x0 Estimated tax payment made Unrealized gain on short-term investment Unrealized gain on long-term investment 36,800 3,900 3,700 37,400 4,300 20X2 Accounts payable Accounts receivable Accumulated depreciation Additional paid-in capital Amortization expense Cash Common stock ($1 par value) Cost of goods sold Deferred taxes payable-Depreciation Deferred taxes payable- Long-term investment Deferred taxes payable- Short-term investment Depreclation expense Dividends declared Dividends payable 155,050 33,800 126,100 175,600 223,278 153,800 184,400 51,900 54,500 119,900 125,900 206,900217,800 26,300 4,200 27.700 4,300 Insurance expense Interest expense Interest income Interest payable Interest receivable 554,400665,300 57,600 11,700 21,70020,700 54,700 2,100 94,600 99,300 43,700 89,700 17,400 Long-term investment - at cost Marketing expense Marketing payable Note receivable Notes payable Patent Prepaid insurance Retained earnings beginning Salaries payable Salary expense 85,200 16,600 414,700 291,600 389,818 21,300 239,800 21,600 274,100 22,400 22,700 115,300 608,500640,500 38,800 38,800 at cost Short-term investment Tax expense Taxes payable Utilities expense Utilities payable 73,10076,900 10,50011,000Explanation / Answer
1)Income statement for 2011 and 2012
Deferred Tax Depreciation
Unrealized gain on short term investments
Unrealized gain on short term investments
3120
1170
180
120
1710
Particulars 2011 2012 Revenue from operations 608500 640500 (-) Cost of goods sold 206900 217800 Gross Profit 401600 422700 (-) Indirect expenses: Insurance 54700 57600 Interest expense 12300 11700 Marketing expense 85200 89700 Salary expense 109500 115300 Utilities expense 73100 76900 Net income from operations(EBIDT) 79100 83200 Depreciation 26300 27700 Earning before interest and tax 52800 55500 (-) Interest expense 12300 11700 Earning before tax 40500 43800 Tax expense: Current tax 12150 13140Deferred Tax Depreciation
Unrealized gain on short term investments
Unrealized gain on short term investments
3120
1170
180
120
1710
Earnings after tax 24060 28650