Financial Statements Jane Corporation\'s capital structure consists of 50,000 sh

Question

Financial Statements Jane Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2017 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue Discontinued operations loss (net of tax) Selling expenses Cash Accounts receivable Common stock Cost of goods sold Accumulated depreciation-machinery Dividend revenue Uneamed service revenue Interest payable Land $1,500,000 63,360 120,000 60,000 90,000 133,500 700,000 180,000 12,000 Retained earnings, January 1, 2017 Interest expense Administrative expenses Dividends declared Allowance for doubtful accounts Notes payable (maturity 7/1/20) Machinery Inventory Accounts payable Income Taxes 1,000 370,000 100,000 270,000 21,000 50,000 24,000 5,000 200,000 450,000 40,000 60,000 177,140 Instructions (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement. (c) Prepare a balance sheet statement.

Explanation / Answer

Income Statement Sales Revenue           1,500,000 Cost of Goods Sold -700000 Gross Margin             800,000 Dividend Revenue 12000 Unearned Service Revenue 4000 Non - Operaing Income 16000 Selling Expenses -120000 Interest Expenses -21000 Admin Expenses -150000 Allowance for Doubtful Debts -5000 Total Expenses -296000 Profit before tax             520,000 (800000+16000-296000) Retained Earnings Statement Retained Earning Opening               270,000 Current Year Profit               520,000 Discontinued Operations loss                (63,360) Dividends Declared                (24,000) Income Taxes              (177,140) Closing              525,500 Balance Sheet Common Stock                133,500 Land        370,000 Retained Earnings                525,500 Patents        100,000 Accumulated Depreciation               180,000 Machinery        450,000 Interest Payable                     1,000 Inventory           40,000 Allowance for Doubtful Debts                     5,000 Cash           60,000 Notes Payable               200,000 Accounts Receivable           90,000 Accounts Payable                  60,000 Dividend Receivable            12,000 Dividends payable                  21,000 Unearned Service Revenue              4,000 Total           1,126,000    1,126,000

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