Other information:

1.Due to Hurricane Lisa, the company experienced an uninsured hurricane loss in amount of S185,000 during the year.

2. When its chairman of the board died, the company realized $250,000 from an insurance policy. Th cash surrender value of this policy has been carried on the books as an investment in the amount of $85,000.

3. Sales of securities held as a part of its portfolio resulted in a gain of $125,600.

4. The amount of income taxes applicable to income was $108,00, excluding the tax effect of the discontinued operations loss which amounted to $25,500.

5.Depreciation was understated by the financial controller due to an error in 2019 (net of tax)

Instructions

Prepare a multiple-step income statement and a retained earnings statement for the year ended 31December 2022. 

Transcribed Image Text:

I Problem 2-Income statement and retained earnings statement. Belize Electricity Limited's capital structure consists of 100,000 shares of common stock. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue Discontinued operations loss (net of tax) Selling expenses Cash Accounts receivable Common stock Cost of goods sold Accumulated depreciation-machinery Dividend revenue Unearned service revenue Interest payable Land Patents Retained earnings, January 1, 2022 Interest expense Administrative expenses Dividends declared on Preferred stock Dividends declared on common stock Allowance for doubtful accounts Notes payable (maturity 7/1/25) Machinery Materials Accounts payable $2,740,000 82,500 198,000 70,000 100,000 200,000 995,500 280,000 55,000 5,400 2,000 470,000 200,000 2,570,000 55,000 312,000 25,000 55,000 5,000 200,000 650,000 50,000 70,000 I Problem 2-Income statement and retained earnings statement. Belize Electricity Limited's capital structure consists of 100,000 shares of common stock. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue Discontinued operations loss (net of tax) Selling expenses Cash Accounts receivable Common stock Cost of goods sold Accumulated depreciation-machinery Dividend revenue Unearned service revenue Interest payable Land Patents Retained earnings, January 1, 2022 Interest expense Administrative expenses Dividends declared on Preferred stock Dividends declared on common stock Allowance for doubtful accounts Notes payable (maturity 7/1/25) Machinery Materials Accounts payable $2,740,000 82,500 198,000 70,000 100,000 200,000 995,500 280,000 55,000 5,400 2,000 470,000 200,000 2,570,000 55,000 312,000 25,000 55,000 5,000 200,000 650,000 50,000 70,000

Answer rating: 100% (QA)

Income Statement for Belize Electricity Limited Year Ended December 31 2022 Revenue Sales Revenue 27... View the full answer