Question: How do I know when I am looking at a Multiple Income statement when using the SEC.gov website? How do I prepare a documentation statement
How do I know when I am looking at a Multiple Income statement when using the SEC.gov website?
How do I prepare a documentation statement for Music Warehouse?
How do I multiple-step income statement for Music Warehouse? How do I complete a statement of changes in stockholder's equity for Music Warehouse?
Music Warehouse
Adjusted Trial Balance
December 31, 2008
Debit
Credit
Cash$24,675
Accounts Receivable5,625
Inventory65,980
Land93,000
Building289,000
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
Dividends10,000
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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