Preparing Both an Income Statement and a Balance Sheet from a Trial Balance Jordan Sales Company (organized

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Preparing Both an Income Statement and a Balance Sheet from a Trial Balance

Jordan Sales Company (organized as a corporation on April 1, 2011) has completed the accounting cycle for the second year, ended March 31, 2013. Jordan also has completed a correct trial balance as follows:


JORDAN SALES COMPANY Trial Balance At March 31, 2013 Account Titles Credit Debit $ 58,000 Cash Accounts receivable 49,00


Required:
Complete the financial statements as follows:
a. Classified (multiple-step) income statement for the reporting year ended March 31, 2013. Include income tax expense, assuming a 25 percent tax rate. Use the following subtotals: Gross Profit, Total Operating Expenses, Income from Operations, Income before Income Taxes, and Net Income, and show EPS.
b. Classified balance sheet at the end of the reporting year, March 31, 2013. Include (1) income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings. Use the following captions (list each item under these captions).
Assets Stockholders' Equity
Current assets Contributed capital
Noncurrent assets Retained earnings
Liabilities
Current liabilities
Long-termliabilities

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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