The following is a pre-closing trial balance for Axo Inc., a manufacturer of metal tubing, as at
Question:
During the year, the company declared and paid dividends of $300,000, and issued shares for proceeds of $200,000.
Required:
Prepare, in good form, the following:
a. A multi-step income statement that includes relevant subtotals, with operating expenses listed by their nature, for the year ended December 31, 2016.
b. A statement of changes in equity for the year ended December 31, 2016.
Debit Credit $ 525,000 Accounts payable $ 1,360,000 Accounts receivable Accumulated depreciation 6,555,000 Cash 69,300 Common shares 700,000 Depreciation 1,475,000 Income from discontinued operations 25,000 Income tax expense 154,200 Income tax on income from discontinued operations 7,500 Interest expense 355,000 Inventories 645,000 Long-term debt 5,400,000 Plant and equipment 12,300,000 Raw materials used 1,670,000 Retained earnings 817,000 Salaries and wages 5,210,000 Sales 9,224,000 $23,246,000 $23,246,000 Total
Step by Step Answer:
a The income statement with subtotal and operating expenses listed by nature is as foll...View the full answer
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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