Use the following information to prepare a multistep income statement and a balance sheet for Legg Company

Question:

Use the following information to prepare a multistep income statement and a balance sheet for Legg Company for 2013.

Operating Expenses ..............$ 45,000

Accounts Payable .............. 48,000

Land ................... 45,000

Dividends ................. 10,000

Beginning Retained Earnings .......... 120,100

Interest Revenue ............... 12,000

Inventory ................. 105,000

Notes Receivable (short term) ......... 15,000

Cash ..................... 16,700

Interest Receivable (short term) ......... 2,100

Cash Flow from Investing Activities ....... (91,600)

Allowance for Doubtful Accounts ........ $ 6,500

Sales Revenue ................ 350,000

Uncollectible Accounts Expense ......... 9,600

Accounts Receivable ............... 92,000

Salaries Payable ............... 10,500

Supplies .................. 4,500

Prepaid Rent ................ 16,000

Common Stock ............... 60,000

Cost of Goods Sold .............. 225,000

Salaries Expense ................ 61,200

Unearned Revenue ............... 40,000

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...