Question

Requirement 1: Using the List of Accounts, create a multiple-step income statement, statement of retained earnings, and classified balance sheet for the year ending December 31, 201x. The multiple-step income statement should also include a section for basic “per-share” amounts for the Income from Continuing Operations and the Net Income line items. Also, create your own company name. These statements should be in an appropriate format. This means that the multiple-step income statement should present gross profit, operating, nonoperating, and nonrecurring items separately. This also means that the classified balance sheet should present current and long-term items separately. The statement of retained earnings only needs to present the “Retained Earnings” column from a Statement of Stockholders’ Equity. For purposes of the “per-share” section, assume that basic and diluted EPS are the same amount (i.e., there are no dilutive securities). Also, assume that the weighted-average number of shares outstanding for both basic and diluted is equal to 300,000 shares.

Account Names	VALUE
Accounts Payable	$75,946
Accounts Receivable (Gross)	$92,816
Accumulated Depreciation (Factory)	$450,821
Accumulated Depreciation (Machine Under Capital Lease)	$22,265
Accumulated Other Comprehensive Income (Ending)	$(22,208)
Additional Paid in Capital-Common Stock	$449,821
Additional Paid in Capital-Preferred Stock	$59,706
Additional Paid in Capital-Stock Options	$65,816
Additional Paid in Capital-Treasury Stock	$2,863
Allowance for Doubtful Accounts	$4,641
Bad Debt Expense (Selling)	$7,219
Bond Issue Cost Expense	$2,987
Bonds Payable	$132,303
Brands and Trademarks	$56,951
Cash	$44,025
Common Stock	$21,222
Common Stock Dividends Declared	$2,279
Copyrights	$27,819
Cost of Goods Sold	$798,337
Current Marketable Securities (Trading)	$37,764
Current Portion of Capital Lease Payable	$10,048
Deferred Tax Liabilities	$47,293
Depreciation Expense (Factory-Admin)	$20,320
Depreciation Expense (Machine Under Capital Lease-Selling)	$10,687
Dividend Revenue	$7,592
Dividends Payable	$1,465
Factory	$1,482,092
Gain from Discontinued Operations (Net of Tax)	$726
Goodwill	$71,263
Income Tax Expense-Current	$32,632
Income Tax Expense-Deferred	$8,362
Interest Expense	$40,523
Interest Payable	$3,364
Interest Revenue	$8,723
Inventory	$153,043
Land	$277,925
Long-Term Capital Lease Payable	$118,147
Long-Term Investments (HTM)	$15,749
Long-Term Marketable Securities (AFS)	$18,787
Loss on Extinguishment of Note Payable	$77,911
Machine Under Capital Lease	$41,063
Pension Expense (Admin)	$2,631
Pension Expense (Selling)	$14,605
Preferred Stock	$9,216
Preferred Stock Dividends Declared	$1,342
Premium on Bonds Payable	$13,853
Prepaid Rent	$2,087
Prepaid Supplies	$11,958
Rent Expense (Selling)	$100,605
Retained Earnings (Beginning)	$179,408
Salaries Payable	$7,632
Salary Expense (Admin)	$24,489
Salary Expense (Selling)	$62,764
Sales Revenue	$1,869,331
Supplies Expense (Selling)	$2,113
Treasury Stock	$65,174
Unamortized Bond Issue Costs	$38,574
Unearned Revenue	$93,096
Unrealized Loss on Marketable Securities (Trading)	$13,806

Answer 1