Below are select pretax account balances of Cabalt Company on December 31, 2019

Require:

Prepare a multiple-step income statement for the year, include a separate schedule for cost of goods sold. Assume an income tax rate of 30%

Purchases (net) $25,000

merchandise inventory, 1/1/20 4,000

extra-ordinary gain 13,000

Income from operations of discontinued component 2,000

Loss on disposal of discontinued component 5,000

Sales (net) 60,000

Other items (revenues) 6,000

Merchandise inventory 12/31/20 4,000

Operating expenses 7,000

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3. The following information has been provided by Meyers Company as of December 31, 20XX:

Unearned rent $ 4,500

Retained earnings (unrestricted) 141,000

Common stock, $5 par 150,000

Premium on bonds payable 1,800

Bonds payable 28,000

Additional paid-in capital on common stock 55,000

Treasury stock, at cost 29,000

Retained earnings restricted for plant expansion 17,000

Sinking fund for bond retirement 31,250

Required:

Prepare the shareholders' equity section of the balance sheet for Meyers

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3. Assume that Amanda invested $10,000 in a savings account paying 10% annually. She also invested another $10,000 in a different savings account paying 10% compounded annually. What will the balances be in both accounts after 4 year?

Answer rating: 100% (QA)

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