Question

The Matson Company had the following financial information for the year ended April 30

Salaries Expense                                                                              $123,800

Common Stock                                                                                    72,000

Allowance for Doubtful Accounts                                                7,000

Bad Debts Expense                                                                            15,800

Supplies                                                                                                 14,500

Interest Revenue                                                                                 4,600

Accumulated Depreciation                                                           38,000

Sales                                                                                                  500,000

Dividends                                                                                          12,000

Interest Receivable (short term)                                                3,300

Beginning Retained Earnings                                                       28,800

Advertising Expense                                                                       79,000

Accounts Payable                                                                             142,000

Cash Flow from Investing Activities                                          105,000

Notes Receivable (short-term)                                                   17,000

Land                                                                                                       50,000

Cash                                                                                                    23,000

Inventory                                                                                          154,000

Salaries Payable                                                                                102,000

Cost of Goods Sold                                                                          212,000

Accounts Receivable                                                                       113,000

Equipment                                                                                          77,000

   a)         Prepare the multistep income statement (in good form) for April 30, 2020.                                                                                          

   b)        Prepare the classified balance sheet (in good form) as of April 30, 2020.                                                                                  

       There may be items that will NOT appear on either statement. The total current assets are $317,800 and the total current liabilities are $244,000. You do not need any detail for cost of goods sold so don't include it!

Answer 1

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The Matson Company
Answer a
Multi Step Income Statement for the year ended.
Particulars	Amount $
Sales Revenue	500,000.00
Less: returns and allowances
Net Sales		500,000.00
Cost of goods sold		212,000.00
Gross Profit		288,000.00
Advertising Expense	79,000.00
Salaries Expense	123,800.00
Bad Debts Expense	15,800.00
Operating Expense		218,600.00
Operating Income		69,400.00
Interest Revenue	4,600.00
Other expense and income		4,600.00
Net Income		74,000.00
Statement of Retained Earnings	Amount $
Opening Balance	28,800.00
Add: Net Income for the year	74,000.00
Less: Dividend	12,000.00
Closing Balance	90,800.00
Answer b
Balance Sheet
Assets	Amount $	Amount $
Cash		23,000.00
Office Supplies		14,500.00
Accounts Receivable	113,000.00
Allowance for Doubtful Accounts	(7,000.00)	106,000.00
Interest Receivable (short term)		3,300.00
Notes Receivable (short-term)		17,000.00
Inventory		154,000.00
Total Current Assets		317,800.00
Property, plant & equipment, net
Land		50,000.00
Equipment	77,000.00
Accumulated Depreciation	(38,000.00)	39,000.00
Property, plant & equipment, net		89,000.00
Patents
Total Assets		406,800.00
Liabilities & Stockholders' Equity
Liabilities	Amount $	Amount $
Accounts Payable	142,000.00
Salaries Payable	102,000.00
Current Liabilities		244,000.00
Total Liabilities		244,000.00
Stockholders' Equity
Common Stock	72,000.00
Retained Earnings	90,800.00
Total Stockholders' Equity		162,800.00
Total Liabilities & Stockholders' Equity		406,800.00