Preparing a balance sheet and an income statement The accounting records of Callen Incorporated reveal the following for 2007 and 2008. Callen applies U.S. GAAP, and reports its results in thousands of euros.

a. Prepare a Comparative balance sheet for Callen Incorporated as of December 31, 2007, and December 31, 2008. Classify each balance sheet item into one of the following categories: current assets, noncurrent assets, current liabilities, noncurrent liabilities, and shareholders€™ equity. Use the U.S. GAAP convention to order the accounts on the balance sheet.
b. Prepare an income statement for Callen Incorporated for the year ended December 31, 2008. Separate income items into revenues and expenses.
c. Prepare a schedule explaining the change in retained earnings between December 31, 2007, and December 31,2008.

Transcribed Image Text:

December 31 Balance Sheet Items 2008 2007 Accounts Payable... € 16,402 € 14,063 Cash.... 2,559 30,536 Property, Plant, and Equipment (net). 98,130 149,990 72,325 Common Stock 72,325 Merchandise Inventory. 114,249 151,894 Notes Payable to Banks (due within ane year) 15,241 43,598 Long-Term Debt... 31,566 38,315 Other Current Assets 109,992 134,916 Other Current Liabilities 84,334 109,335 Other Noncurrent Assets 56,459 88,955 Other Noncurrent Liabilities 19,859 27,947 Retained Earnings 169,639 222,731 For the Year Ended December 31, 2008 Income Statement Items Administrative Expenses Cost of Goods Sold... Income Tax Expense . Interest Expense Sales Revenue .. Selling Expenses. €141,183 382,349 24.324 2,744 695,623 72,453