Braun Company has the following ledger accounts and adjusted balances as of December 31, 2016. All accounts have normal balances. Braun's income tax rate is 40%. Braun has 300,000 shares of Common Stock authorized and 100,000 shares of Common Stock issued and outstanding.

Accounts Payable	13,000
Accounts Receivable	90,000
Accumulated Depreciation -Building	25,000
Administrative Expenses	20,000
Allowance for Doubtful Accounts	10,000
Bonds Payable (Mature 2020)	125,000
Building	200,000
Cash	13,000
Common Stock	200,000
Cost of Goods Sold	190,000
Dividends	10,000
Income from Operations of Division X	20,000
(Division X is a component of Braun Company)
Interest Revenue	10,000
Inventory	140,000
Land	100,000
Loss from Earthquake	35,000
(unusual in nature and infrequent in occurrence)
Loss from Sale of Division X	40,000
(Division X is a component of Braun Company)
Loss on Sale of Land	5,000
Patent	15,000
Preapaid Rent	5,000 (Two years rent paid in advance for offsite document storage)
Retained Earnings, January 1, 2016	125,000
Sales Revenue	450,000
Selling Expenses	65,000

Prepare a multiple-step income statement and a classified balance sheet.

Answer rating: 100% (QA)

Solution The required financial statements have been presented below Braun Company Income Statement ... View the full answer