Prepare a multiple step income statement, statement of retained earnings, and classified balance sheet with common-size financial information (balance sheet and income statement) based on the attached adjusted trial balance.

Smith, Inc.
Adjusted Trial Balance
December 31, 2011

Debit Credit
Accounts receivable 304,000
Accumulated depreciation - buildings 175,000
Accumulated depreciation - vehicles 44,000
Allowance for bad debts 1,000
Buildings 406,000
Copyrights 130,000
Inventory 69,000
Land 98,000
Land held for speculation 170,000
Last National Bank Checking 51,000
Prepaid insurance 12,800
Supplies 8,000
Vehicles 153,000
Accounts payable 73,000
Bonds payable 400,000
Interest payable 59,000
Discount on bonds payable 83,800
Notes payable (due in 3 years) 113,000
Unearned rent 13,000
Additional paid in capital, common stock 72,000
Common stock ($10 par) 160,000
Dividends paid 85,000
Retained earnings, Janaury 1 164,000
Treasury stock 35,000
Rent revenue 84,000
Sales 1,711,600
Sales discounts 103,000
Advertising expense 73,000
Commissions paid 123,000
Cost of goods sold expense 472,000
Depreciation expense 72,000
Insurance expense 9,000
Interest expense 11,000
Loss on sale of equipment 41,000
Salaries expense 492,000
Sales entertainment expense 46,800
Supplies used 21,200
Totals 3,069,600 3,069,600

Income taxes are 30% and have not been recorded or paid. On January 1, there were 10,000 shares of common stock outstanding. There were no stock transactions during the year.

Check figures: income from operations $299,600 net income $232,120; total assets $1,181,800; taxes payable $99,480.

Answer rating: 100% (QA)

Smith Inc Statement of Income For the period ending Sales 1711600 Sales ... View the full answer