Question

Adjusted Trial Balance December 31, 2017 DEBIT 8,000 4,005 CREDIT 500 1001 80 22.000 150 4,000 1,800 4001 Cash Accounts Receivable Allowance for Doubtful Accounts Short term Note Receivable Interest Receivable Supplies Inventory Prepaid Expenses Equipment Accumulated Depreciation Copyrights Accounts Payable Interest Payable Unearned Revenue Long Term Note Payable Common Stock Paid-in-Capital In Excess of Par - CS Retained Earnings (1/1/17) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad debt expense Depreciation Expense Amortization Expense Wages Expense Rent Expense Orice Expense Supplies Expense Selling Expense Interest Expense Interest Revenue Income Tax Expense Totals 450 15 150 1,200 5,300 700 3,000 2,500 41,830 301 751 24,500 80 150 90 4,550 1.700 800 250 580 100 335 480 55,120 5 5,120

Conduct a multi step income statement, statement of retained earnings, and classified balance sheet for the following

Answer 1

1.

Income Statement
For the year ended December 31, 2017
Revenues
Sales	$ 41,830
Less: Sales returns and allowances	$      (30)
Less: Sales discounts	$      (75)
Net sales		$   41,725
LessL Cost of goods sold		$   24,500
Gross profit		$   17,225
Less: Operating expenses
Baddebt expenses	$         80
Depreciation expense	$      150
Amortization expense	$         90
Wages expense	$   4,550
Rent expense	$   1,700
Office expense	$      800
Supplies expense	$      250
Selling expense	$      580
Total operating expense		$     8,200
income from operations		$     9,025
Non operating income and (expenses)
Interest revenue	$      335
Interest expenses	$    (100)
Total Non operating income and (expenses)		$         235
Income before income tax		$     9,260
Less: Income tax expense		$         480
Net income		$     8,780

2.

Statement of Retained Earnings
For the year ended December 31, 2017
Retained earnings, Beginning	$       3,000
Add: Net income	$       8,780
	$    11,780
Less: Dividends	$    (2,500)
Retained earnings, Ending	$       9,280

3.

Balance Sheet
At December 31, 2017
Assets
Cash		$    8,000
Accounts Receivables	$   4,005
Less: Allowance for doubtful accounts	$    (340)	$    3,665
Short term note receivable		$        500
Interest receivable		$        100
Supplies		$          80
Inventory		$    2,000
Prepaid expense		$        150
Total current assets			$   14,495
Property, Plant and Equipment
Equipment		$    4,000
Accumulated depreciation—Equipment		$ (1,800)
Total property, plant and equipment			$     2,200
Intangible assets
Copyright			$         400
Total Assets			$   17,095
Liabilities
Current Liabilities
Accounts payable		$        450
Interest payable		$          15
Unearned revenue		$        150
Total current liabilities			$         615
Non-current liabilities
Long-term note payable			$     1,200
Total liabilities			$     1,815
Shareholders' equity
Common stock		$    5,300
Paid in capital in excess of par		$        700
Retained earnings		$    9,280
Total Shareholders' equity			$   15,280
Total liabilities and shareholders' equity			$   17,095

You can reach me over comment box if you have any doubts. Please rate this answer