After all the transactions for the year ended May 31, 2016, had been posted the following data were taken from the records of Desmond Shipping 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 1,007,813.
b. Prepare a balance sheet as at May 31, 2016.

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Cash 2$ 240,001 Accounts receivable 4,635,750 3,677,100 1,085,850 Inventory Supplies Land 1,050,000 Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Income taxes payable Dividends payable Long-term debt, due 2022 $0.90 preferred shares, 5,000,000 authorized, 376,050 issued and outstanding Common shares, unlimited authorized, 750,000 issued and 7,650,000 750,000 3,376, 215 826,350 82.500 529, 223 750,000 3,760,500 outstanding Contributed capital from retirement of common shares Common share dividend distributable 3,697,500 139,500 168,750 Retained earnings Gain on sale of land 4,258,163 80,340 Net sales Cost of goods sold Loss on discontinued operation Tax savings on discontinued operation Interest expense Income taxes expense (on regular operations) Selling and administration expenses 10,440,750 4,098,105 900,000 270.000 525,000 1,093,950 2,251.200