Question

At December 31, 2017 an analysis of the accounts and discussions with Porter Corporation's executives revealed the following information:

The amount of income taxes applicable to ordinary income was $60,372. This tax amount does not include the tax effect of the discontinued operations loss which amounted to $24,540.
Inventory is stated at the lower-of-FIFO-cost-or-market                                                   
Investments include common stock of a company that is classified as short-term and totals $81,360 and common stock of a different company that is classified as a long-term and it totals $271,360.                                                   
The cost and fair value of the investments in the common stock are the same.                                                   
Notes payable includes $81,360 due before December 31, 2018 and the remaining amount due later than that date.                                                   
Bonds payable are comprised of a 7% bond due in 2025.                                                   
The Preferred Stock has no par value. 200,000 shares are authorized and 71,360 shares are issued.                                                   
The Common Stock has a $1.00 par value. 400,000 shares are authorized and 101,360 shares are issued.                                                   
Land consists of $501,360 used in operations and $270,000 held for future use.   

   12/31/2017
Sales revenue    1,206,580
Discontinued operations loss (net of tax)    57,260
Selling expenses    125,620
Cash    151,360
Accounts receivable    171,360
Common stock    101,360
Cost of goods sold    704,420
Buildings    1,041,360
Accumulated depreciation-machinery    181,360
Accumulated depreciation - buildings    361,360
Dividend revenue    7,330
Unearned service revenue    6,360
Interest payable    1,150
Land     771,360
Franchises    166,360
Retained deficit    162,190
Interest expense    17,460
Administrative expenses    165,170
Dividends declared    25,820
Allowance for doubtful accounts    11,360
Notes payable     202,720
Machinery    451,360
Inventories    181,360
Accounts payable    141,360
Cash Surrender Value of life Insurance    41,360
Investments    352,720
Goodwill    101,360
Discount on bonds payable    37,280
Income taxes payable    37,280
Bonds payable    1,001,360
Preferred stock    428,160
Additional paid-in capital    912,240

Prepare a trial balance and a multi-step income statement for Porter company.
                                               

Answer 1

Particulars (Dr)	Amount	Particulars(CR)	Amount
Investment(short term) Investment(long term) Land Selling Expense Cash Accounts Receivable Cost of Goods sold Buildings Accumulated depreciation-Machinery Accumulated depreciation-buildings Franchises Retained Deficit Interest expense Administrative expense Machinery Inventories Goodwill Discontinued Operations(loss)	81360 271360 270000 501360 125620 151360 171360 704420 680000 181360 361360 166360 162190 17460 165170 270000 181360 101360 81800	Notes Payable(short term)    Notes Payable(long term) Bonds Payable Preferred Stock Common Stock Sales Dividend revenue Unearned Service Revenue Additional paid in capital Discount on Bonds payable Income tax payable Cash surrender value of insurance Allowance for doubtful accounts Proposed dividend Interest Payable Accounts payable	81360 121360 1001360 428160 101360 1206580 7330 6360 912240 37280 37280 41360 11360 25820 1150 141360