Question: How do I do a multiple income statement for Music Warehouse and a statement of changes in stockholder's equity for Music Warehouse using this information:
How do I do a multiple income statement for Music Warehouse and a statement of changes in stockholder's equity for Music Warehouse using this information:
Music Warehouse
Adjusted Trial Balance
December 31, 2008
Debit
Credit
Cash
$24,675
Accounts Receivable
5,625
Inventory
65,980
Land
93,000
Building
289,000
Accumulated Depreciation
75,000
Notes Payable
85,000
Accounts Payable
53,600
Interest Payable
4,750
Common Stock
10,000
Additional Paid-in Capital
120,000
Dividends
10,000
Retained Earnings
59,980
Sales
937,500
Sales Discounts
22,675
Cost of Goods Sold
723,000
Salaries
81,000
Utilities
8,900
Repairs & Maintenance
5,225
Telephone
2,850
Interest Expense
4,400
Depreciation Expense
9,500
$1,345,830
$1,345,830
The following is additional information needed for financial-statement preparation:
Loss as a result of hurricane damage on the building: $17,000 (assume that the building is not located in an area that sustains frequent hurricane damage.)
Loss because of the discontinuation of the cassette tape music segment: $26,875
Beginning of the year balance of common stock: $8,000 (assume that changes are related to issuance of common stock.)
Beginning of the year balance of additional paid-in capital: $102,000
Effective income tax rate: 35%
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