After all the transactions for the year ended May 31, 2016, had been posted, the data below were taken from the records of Angelos Design Ltd. Assume all accounts have normal balances.

Instructions
a. Prepare a multiple-step income statement for the year ended May 31, 2016, including earnings per share. The weighted average number of common shares is 656,250. Preferred shareholders were paid their dividend entitlement during the year.
b. Prepare a balance sheet as at May 31, 2016.

Transcribed Image Text:

$ 160.000 Cash Accounts receivable 3,090,500 Inventory Supplies Notes receivable 2,451,400 723,900 700.000 Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Income taxes payable Dividends payable Long-term debt, due 2022 $0.60 preferred shares, 5,000,000 authorized, 250,700 issued and outstanding Common shares, unlimited authorized, 500,000 issued and outstanding Contributed capital from retirement of common shares Common share dividend distributable Retained earnings Gain on sale of equipment Net sales 5,100.000 400.000 2,250.810 475,690 55.000 235,210 500.000 2,507,000 2.465.000 93,000 112,500 3,131,590 53,560 6,960,500 Cost of goods sold Loss on discontinued operations Tax savings on discontinued operations Interest expense Income taxes expense (regular operations) Selling and administration expenses 2.732.070 600,000 180.000 350,000 729,300 1,500.800