Income statement, stockholders\' equity, and balance sheet. QUESTION 44 Please p

Question

Income statement, stockholders' equity, and balance sheet.

QUESTION 44 Please prepare the multi-step income statement, the statement of stockholders' equity and the classified balance sheet and answer the fill-in-the-blanks questions Accounts Payable Equipment Supplies Rent Expense Sales Revenue Accumulated Depreciation Buildings Salaries Expenses $28,000 $220,000 $36,000 $12,000 $545,000 $20,000 $65,000 $25,000 Accounts Receivable Cost of Goods Sold Notes Payable (Due in 2years) Interest Expense Sales Discount Depreciation Expense Income Tax Expense Cash $150,000 $400,000 $40,000 $6,000 $45,000 $10,000 $8,000 $12,000 In addition, the company has common stock of $250,000 at the beginning of the year and issued additional shares for S50,000. The company also had retained earinings of $60,000 at the beginning of the year and paid dividend of $4,000 during the year. Operating Income Net Income Ending bal Ending balance of retained ear Ending total stockholders' equity Total current assets Total long-term assets Total assets Total liabilities Total liabilities and stockholders' equity lance of common stock nings

Explanation / Answer

Income statement :

a) Operating income = $53000

b) Net income = $39000

c) Ending balance of Common Stock = 250000+50000 = $300000

d) Ending balance of retained earnings = 60000+39000-4000 = $95000

e) Ending total stockholder's equity = 300000+95000 = $395000

f) Total current assets = 12000+150000+36000 = $198000

g) Total long term assets = 220000-20000+65000 = $265000

h) Total Assets = 198000+265000 = $463000

i) Total liabilities = 28000+40000 = $68000

j) Total liabilities and stockholder's equity = 395000+68000 == $463000

Net Sales (545000-45000) 500000 Less: Cost of goods sold -400000 Gross profit 100000 Less; Rent expense -12000 Less: Salary expense -25000 Less: Depreciation expense -10000 Operating income 53000 Less: Interest expense -6000 Less: Income tax -8000 Net income 39000

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