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Can you please solve 6,7&8 4. Prepare a multiple-step income statement on the proper worksheet. Your...

Can you please solve 6,7&8

4. Prepare a multiple-step income statement on the proper worksheet. Your Income Statement should be in good form (proper titles, etc., use examples from your book) and well formatted. Do your best designating between selling and administrative expenses. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to the adjusted numbers on your worksheet.)

5. Prepare a Comprehensive Income Statement on the proper worksheet. Accounting Creations uses the Second Income Statement Approach. You should use formulas in all cells, not constant numbers.

6. Prepare a Statement of Changes in Stockholder’s Equity. You should use formulas in all cells, not constant numbers.

7. Prepare a Classified Balance Sheet on the proper worksheet as of 12/31/18. Your Statement should be formatted. You should use formulas in all cells, not constant numbers.

8. Prepare closing entries on the proper tab. You may close directly to Retained Earnings

Accounting Creations Incorporated
End of Period Worksheet
For the Year Ended December 31, 2018
Unadjusted Adjusted
Account Title Trial Balance Adjustments Trial Balance
DR CR DR CR DR CR
Cash              330,000                 -         65,000       265,000
Accounts Receivable              694,980                 -         694,980
Allowance for Doubtful Accounts                       -            17,000       11,500         28,500
Interest Receivable                       -                   -  
Merchandise Inventory              425,000                 -         22,500       12,500       435,000
Prepaid Insurance                       -                   -           3,000          3,000
LIFO Reserve                       -            32,000       22,500         54,500
Prepaid Advertising                       -                   -           8,000          8,000
Prepaid Rent                17,000                 -         14,167          2,833
Office Supplies                  6,000                 -         35,385         29,385
Note Receivable                25,000           125         25,125
Available for Sale Securities              375,000                 -         84,385       459,385
Office Building            3,750,000                 -       350,000    3,400,000
Accumulated Depreciation - Office Building                       -            87,500         87,500
Storage Building            1,275,000                 -         23,833    1,251,167
Accumulated Depreciation - Storage Building                       -                   -         23,833         23,833
Land              750,000                 -         750,000
Leasehold Improvements              225,000                 -           3,515       228,515
Accumulated Depreciation - Leasehold Improvements                       -                   -             469             469
Office Equipment              325,000                 -         325,000
Accumulated Depreciation - Office Equipment                       -            65,000       52,000       117,000
Patent              150,000                 -         25,000       125,000
Accounts Payable                       -           345,000       12,000       333,000
Sales Tax Payable                       -                   -       343,137       343,137
Salaries Payable                       -           142,000       142,000
Payroll Taxes Payable                       -            25,000         25,000
Interest Payable                       -                   -  
Income Tax Payable                       -                   -  
Unearned Rent Revenue                       -                   -         15,000         15,000
Loan Payable - Onstar Bank                       -           650,000       26,000       676,000
Loan Payable - Coldstar Bank                       -        2,000,000       61,000    2,061,000
Common Stock                       -           650,000       650,000
Additional Paid in Capital                       -        1,998,750    1,998,750
Retained Earnings                       -           920,000       920,000
Accumulated Other Comprehensive Income                       -            25,000         25,000
Dividends                84,750                 -           84,750
Sales                       -        4,528,200     351,637    4,165,927
Sales Returns and Allowances                42,250                 -           42,250
Sales Discounts                19,250                 -           19,250
Cost of Goods Sold            1,979,500                 -         12,500    1,992,000
Sales Salaries Expense              436,400                 -         436,400
Office Salaries Expense              274,000                 -         274,000
Advertising Expense                16,000                 -           8,000          8,000
Depreciation Expense - Office Building                       -  
Depreciation Expense - Leasehold Improvements                       -                   -             469             469
Depreciation Expense - Office Equipment                       -                   -         52,000         52,000
Leasing Expense - Stores              132,000                 -         132,000
Miscellaneous Selling Expense                23,000                 -         19,515          3,485
Research & Development Expense                15,000       65,000         80,000
Rent Expense - Storage Facility                       -                   -         14,167         14,167
Insurance Expense                15,000                 -           3,000         12,000
Office Supplies Expense                35,000                 -         35,385         70,385
Miscellaneous Administrative Expense                  9,170                 -       350,000       359,170
Rent Revenue                       -            75,000       15,000         60,000
Interest Revenue on Note Receivable                       -                   -             125             125
Dividend Revenue on AFS Securities                       -            25,000       48,385         23,385
Interest Expense                       -                   -         71,000         71,000
Bad Debt Expense                35,000                 -           3,000         32,000
Amortization Expense                       -                   -         25,000         25,000
Income Tax Expense                       -                   -   16000         16,000
Payroll Taxes Expense              121,150                 -         121,150
         11,585,450    11,585,450 1,152,516 1,152,516 11,798,996 11,798,996

Solutions

Expert Solution

Multistep income statement has been prepared to arrive at statement of retained earnings which will be taken to balance sheet.

The amount in yellow is not possible as inventory can not be negative. However it has been taken directly from the trial balance provided.

requirement is not clear for part 8.)


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