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Wang Corporation's capital structure consists of 50,000 ordinary shares. At December 31, 2011 an analysis of...

Wang Corporation's capital structure consists of 50,000 ordinary shares. At December 31, 2011 an analysis of the accounts and discussions with company officials revealed the following information:

            Sales                                                                                                       ¥1,100,000

            Purchase discounts                                                                                        18,000

            Purchases                                                                                                     642,000

            Loss on discontinued operations (net of tax)                                                42,000

            Selling expenses                                                                                          128,000

            Cash                                                                                                               60,000

            Accounts receivable                                                                                      90,000

            Share capital                                                                                                200,000

            Accumulated depreciation                                                                          180,000

            Dividend revenue                                                                                            8,000

            Inventory, January 1, 2011                                                                          152,000

            Inventory, December 31, 2011                                                                    125,000

            Unearned service revenue                                                                               4,400

            Accrued interest payable                                                                                 1,000

            Land                                                                                                            370,000

            Patents                                                                                                         100,000

            Retained earnings, January 1, 2011                                                            290,000

            Interest expense                                                                                             17,000

            General and administrative expenses                                                          150,000

            Dividends declared                                                                                        29,000

            Allowance for doubtful accounts                                                                    5,000

            Notes payable (maturity 7/1/14)                                                                 200,000

            Machinery and equipment                                                                           450,000

            Materials and supplies                                                                                   40,000

            Accounts payable                                                                                          60,000

The amount of income taxes applicable to ordinary income was ¥48,600, excluding the tax effect of the discontinued operations loss, which amounted to ¥18,000.

Instructions

(a) Prepare an income statement.

(b)       Prepare a retained earnings statement.

Solutions

Expert Solution

ekkarill92 answered 7 months ago
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