AFM102 Lecture Notes - Lecture 22: Retained Earnings, Earnings Before Interest And Taxes, Income Statement
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Cole's Cookie Company | ||
Unadjusted Trial Balance (SelectedAccounts) | ||
For the Current Year Ended | ||
Account | Debit | Credit |
Common Stock (no par): Beginning Balance | $ 472,000 | |
Retained Earnings: Beginning Balance | 1,600,000 | |
Accumulated Other Comprehensive Income: Beginning Balance | $ 55,000 | |
Dividends | 67,000 | |
Sales | 2,400,000 | |
Interest Income | 4,600 | |
Dividend Income | 3,800 | |
Gain on Disposal of Plant Assets | 92,000 | |
Unrealized Gain on Trading Securities | 31,000 | |
Gain on Sale of Discontinued Operations-Before Tax | 66,000 | |
Unrealized Gain on Available-for-Sale Bonds-Before Tax | 5,300 | |
Cost of Goods Sold | 610,000 | |
Selling Expenses | 41,000 | |
Office Salaries Expense | 75,000 | |
Legal Fees-General | 8,200 | |
Sales Salaries Expense | 33,000 | |
Advertising Expense | 35,000 | |
Office Supplies Expense | 72,000 | |
Accounting Fees-Administrative | 14,000 | |
Amortization Expense-General | 28,000 | |
Depreciation Expense-General | 35,000 | |
Interest Expense | 8,100 | |
Loss on Asset Impairment | 9,200 |
Above is the Year end trial balance
Cookie Company provided the following accounts from its?year-end trial balance.
The company is subject to a 45?% income tax rate.
Requirement
Prepare a? multiple-step income statement for the currentyear.
ABC Company is preparing for an audit. To begin with, they areevaluating the balances in each account of the trial balance. Usingthe attached trial balance, enter the balances for the followingaccounts:
Cash: $7,500
Finished goods inventory: $1,000 Receivables: $500
Machinery and equipment: $3,000 Building: $5,000
Common stock: $11,500
Bank loan (to be repaid in 3 years): $4,000 Accounts payable:$500
Sale of goods produced: $3,000
Cost of goods sold: $1,500
Interest expense: $500
Enter the category (current and non-current asset/liability,equity, income statement).
TRIAL BALANCE | ||||
Category (Current/Non-currentAsset/Liability/ Income Statement, Equity) | Debit (+) | Credit (-) | ||
Cash | Current Asset | |||
Finished goods | Current Asset | |||
Receivables | Current Asset | |||
Machinery and Equipment | Non current asset | |||
Building | Non current asset | |||
Common Stock | equity | |||
Bank Loans | Non current asset | |||
Accounts Payable | current liability | |||
Sale of Goods Produced | income statement | |||
Cost of Goods Sold | income statement | |||
Depreciation | income statement | |||
Interest Expense | income statement | |||
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