Question: Hello, I need help on how to set this up. Please advise. Thank you! I NTERM. ACCOUNTING 1101: Chapter 4 HW Assignment Chap 4: Prob
Hello, I need help on how to set this up. Please advise. Thank you!
INTERM. ACCOUNTING 1101: Chapter 4 HW Assignment
Chap 4: Prob 1: (Multiple-step & Extraordinary Items) These balances were taken from the accounting books of Sammy's Corporation. on December 31, 20XX.
I need to set up a multiple-step income statement;
Based upon : 100,000 shares of common stock were outstanding during the year.
Interest revenue was $120,400 *
Accumulated depreciationequip. $56,000
Cash $71,400
Accumulated depreciation: building $39,200
Sales $1,932,000 *
Notes receivable $217,000
Accts receivable $210,000
Selling exp. $271,600 *
Prepaid insurance $28,000
Accts payable $238,000
Sales returns & allowances $210,000 *
Bonds payable $140,000
Allowance for doubtful administrative and general accounts $9,800 expenses $135,800
Allowance for doubtful accts $9,800?
Administrative & General Expenses $135,800?
Sales discounts $63,000 *
Accrued liabilities $44,800
Land $140,000
Interest exp. $84,000
Equipment $280,000
Notes payable $140,000
Building $196,000
Loss from earthquake damage $210,000
Cost of goods sold $869,400 *
Common stock $700,000
Retained earnings $29,400
Let's say the tax rate on all items would be 34%.
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