Question

Using the information from the trial balance below and illustrations 4.2 as your guide, complete the  Manitowoc Corporation  Income statement for the year ended  12/31/2020 in good form using the Multiple Step Method including the Earnings per Share. You do not have to fill in every line --  extra ones are given if you need them.

Manitowoc Corp
Adjusted Trial Balance
31/12/2020
Account Title	DR	CR
Purchase Discounts
Freight In
Cash	189,700
Accounts Receivable	120,000
Long-term Notes Receivable	110,000
Inventory	64,000
Office Supplies	14,000
Land	70,000
Equipment	140,000
Buildings	98,000
Allowance for Doubtful Accounts		5,000
Accumulated Depreciation		47,600
Accounts Payable		49,000
Salaries and Wages Payable		18,000
Long Term Notes Payable		70,000
Bonds Payable		100,000
Common Stock as of 1/1/2020		300,000
Retained Earnings		164,800
Cash dividends	45,000
Sales Revenue		995,000
Interest Revenue		18,000
Sales Discounts	14,500
Sales Returns and Allowances	17,500
Gain on sale of Land		30,000
Selling Expense	118,200
Administration Expense	199,000
Tax Expense	53,900
Interest Expense	13,600
Cost of Goods Sold	530,000
	1,797,400	1,797,400
		-
Other Information
Shares Issued	100,000
Shares Outstanding	89,500

B.	Determine Ending R/E by completing a Statement of Retained Earnings for the  year ended 12/31/2020

Using the information above, complete a balance sheet for Manitowoc Corporation in Good Form for 12/31/20.

Answer 1

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Manitowoc Corp
Income Statement	Amount $	Amount $
Sales Revenue	995,000.00
Less: Sales Discounts	(14,500.00)
Less: Sales Returns and Allowances	(17,500.00)
Net Sales Revenue		963,000.00
Less: Cost of goods sold		(530,000.00)
Gross Profit		433,000.00
Less: Operating Expenses
Selling Expense	118,200.00
Administration Expense	199,000.00
Total Operating Expenses		317,200.00
Operating Income		115,800.00
Other revenue (expenses)
Gain on sale of Land	30,000.00
Interest Revenue	18,000.00
Interest Expense	(13,600.00)	34,400.00
Income before tax		150,200.00
Less: Income tax expense		53,900.00
Net Income		96,300.00
Statement of Retained Earnings	Amount $
Opening Balance	164,800.00
Add: Net Income	96,300.00
Less: Dividends	(45,000.00)
Closing Balance	216,100.00
Classified Balance Sheet
Assets	Amount $	Amount $
Current Assets
Cash		189,700.00
Accounts receivable	120,000.00
Allowance for uncollectible accounts	(5,000.00)	115,000.00
Inventory		64,000.00
Office Supplies		14,000.00
Current Assets		382,700.00
Plant, Property & Equipment
Land		70,000.00
Building	98,000.00
Equipment	140,000.00
Less: Accumulated Depreciation	(47,600.00)	190,400.00
Plant, Property & Equipment		260,400.00
Other Assets
Long-term Notes Receivable	110,000.00
Other Assets		110,000.00
Total Assets		753,100.00
Liabilities & Stockholder's Equity
Liabilities
Current Liabilities
Accounts Payable	49,000.00
Salaries and Wages Payable	18,000.00
Current Liabilities		67,000.00
Non Current Liabilities
Long Term Notes Payable	70,000.00
Bonds Payable	100,000.00
Non Current Liabilities		170,000.00
Total Liabilities		237,000.00
Stockholder's Equity
Common stock	300,000.00
Retained earnings	216,100.00
Total Stockholder's Equity		516,100.00
Total Liabilities & Stockholder's Equity		753,100.00