The spreadsheet lists account balances from January 1, 2020 and December 31, 2020. Using this information and the additional information below, generate a multi-step income statement, statement of retained earnings, balance sheet and statement of cash flows for Widgets and Stuff, Inc. Pay attention to proper formatting, remember to report earnings per share on the income statement, there are 200,000 weighted average shares of common stock outstanding.

Other issues/ items to consider:

1. Sold equipment costing 50,000 for 45,150, book value at the time of sale was 37,650
2. Equipment was purchased for cash
3. Redeemed current bond issue on Jan 2, 2020 for carrying amount. (no gain or loss) Remember when bonds are redeemed the bonds payable account is cleared, so it is 0 before the December bonds are issued.
4. Issued new bonds on Dec 30, 2020 at a premium.
5. Have 70% ownership of Pearson Company included in the equity investments. Income for the year for Pearson was 100,000. The company uses the equity method for this investment
6. Purchased more equity investments.
7. Purchased building for cash
8. Declared dividends of 250,000
9. Loss due to a flood consisted of equipment being disposed of that had an original cost of 251,000 and accumulated depreciation of 120,000
10. Discontinued operations had equipment that was disposed of that had an original cost of 85,000 and accumulated depreciation of 40,000.
11. Current portion of Notes Payable 40,000
12. Current portion of Mortgage Payable 50,000

Answer rating: 100% (QA)

Answer Income Statement For the Year Ended December 31 2020 Revenues Sales 1500000 Other 100000 Total Revenues 1600000 Expenses Cost of Goods Sold 1200000 Selling General and Administrative 200000 Dep... View the full answer