2. Financial Statement Preparation: 3 A. Prepare a multiple-step income statement for Malone Corporation in proper income statement format. Use the worksheet labeled "Income Statement". 4. B. Prepare a statement of retained earnings for Malone Corporation in proper format. Use the worksheet labeled 'Stmt Ret. Earnings 5 C. Prepare a classified balance sheet for Malone Corporation using the account format. Use the worksheet labeled "Balance Sheet". 6 7 Malone Corporation's capital structure consists of 100,000 shares of common stock issued and outstanding. At December 31, 2021, an analysis of the 8 accounts and revealed the following information: Income tax rate 30% 9 10 111 12 13 14 15 16 17 18 Sales revenue Sales discounts Accrued interest payable Interest Revenue Selling expenses Cash Accounts receivable Gain on disposal of business operation before tax Accumulated depreciation Bad debt expense Cost of goods sold Inventory, December 31 Preferred stock Patents Retained earnings, January 1 Write-down of inventory to lower-of-cost-or-mar! Notes payable, due in 5 years Machinery and equipment Dividend revenue Accounts payable Note Receivable due in 5 years 19 1,300,000 21,000 5,000 3,300 23,000 63,000 107,000 52,700 205,000 18,000 406,000 136,000 50,000 56,500 180,000 3,100 200,000 475,000 5,200 78,000 55,000 Depreciation expense - selling Loss on sale of investments Sales returns and allowances Common stock Dividends on preferred stock Allowance for doubtful accounts Supplies Depreciation expense - administrative Unearned revenue Amortization expense on patents Depreciation expense error (too small) from 2019 Prepaid insurance Income tax payable Interest expense General and administrative expenses Dividends declared on common stock Land Insurance expense Sales salaries expense Administrative salaries expense 7,000 2,500 74,000 300,000 2,500 6,000 28,120 12,000 25,000 3,000 8,000 40,000 47,000 18,000 55,000 36,000 280,000 66,000 230,000 153,000 20 21 22 23 24 25 26 27 28 29 30 31 2. Financial Statement Preparation: 3 A. Prepare a multiple-step income statement for Malone Corporation in proper income statement format. Use the worksheet labeled "Income Statement". 4. B. Prepare a statement of retained earnings for Malone Corporation in proper format. Use the worksheet labeled 'Stmt Ret. Earnings 5 C. Prepare a classified balance sheet for Malone Corporation using the account format. Use the worksheet labeled "Balance Sheet". 6 7 Malone Corporation's capital structure consists of 100,000 shares of common stock issued and outstanding. At December 31, 2021, an analysis of the 8 accounts and revealed the following information: Income tax rate 30% 9 10 111 12 13 14 15 16 17 18 Sales revenue Sales discounts Accrued interest payable Interest Revenue Selling expenses Cash Accounts receivable Gain on disposal of business operation before tax Accumulated depreciation Bad debt expense Cost of goods sold Inventory, December 31 Preferred stock Patents Retained earnings, January 1 Write-down of inventory to lower-of-cost-or-mar! Notes payable, due in 5 years Machinery and equipment Dividend revenue Accounts payable Note Receivable due in 5 years 19 1,300,000 21,000 5,000 3,300 23,000 63,000 107,000 52,700 205,000 18,000 406,000 136,000 50,000 56,500 180,000 3,100 200,000 475,000 5,200 78,000 55,000 Depreciation expense - selling Loss on sale of investments Sales returns and allowances Common stock Dividends on preferred stock Allowance for doubtful accounts Supplies Depreciation expense - administrative Unearned revenue Amortization expense on patents Depreciation expense error (too small) from 2019 Prepaid insurance Income tax payable Interest expense General and administrative expenses Dividends declared on common stock Land Insurance expense Sales salaries expense Administrative salaries expense 7,000 2,500 74,000 300,000 2,500 6,000 28,120 12,000 25,000 3,000 8,000 40,000 47,000 18,000 55,000 36,000 280,000 66,000 230,000 153,000 20 21 22 23 24 25 26 27 28 29 30 31