ABC CorporationABC Corporation

Trial Balance

December $31,2023$

Payables consist of:

$$500,000$ note payable due June $30,2024$

$900,000$ bonds payable maturing $12/31/2030$

$600,000$ loan payable maturing May $31,2028$

$60,000$ due to suppliers for merchandise and services on account

$17,000$ received from a customer for merchandise to be provided in January $2024.$

$$2,077,000$ Total payables

On December $30,$ the board of directors declared a cash dividend of $$0\mathrm{.}16$ per share on its common

stocks outstanding payable January $20,2024.$ This transaction was not recorded in the company's

accounts

Cash includes the following:

$$40,000$ Cash in a checking account at Peoples Bank

$91,000$ Cash in a savings account at First Bank representing a

compensating balance for a long$-$term loan at this bank

$20,700$ Restricted cash in a savings account to pay bonds maturing $12/31/2030$

$19,700$ Undeposited customers' checks

$600$ Currency and coins in the office

$$172,000$ Total cash

The patent was purchased July $1,2020$ with a $10-$year useful life. However, this asset was

never amortized. Amortization of patents is considered a selling expense.

Two million shares of $$4$ par value common stock are authorized of which $225,000$ shares were issued

and outstanding.

On December $14,2023$ a customer paid $$120,000$ in advance for merchandise to be delivered January $16,2024.$

The cost of this merchandise is $$80,000.$ The accountant incorrectly recorded the amounts in sales revenue

and cost of goods sold respectively. These amounts are considered significant.

Assume an income tax rate of $21\%.$

Required:

Use Microsoft Excel to prepare the following $2023$ financial statements for ABC Corporation:

a$.$ Multiple$-$step income statement that includes earnings per share disclosures.

b$.$ Statement of retained earnings.

c$.$ Classified balance sheet.

Trial Balance

December $31,2023$

Additional information

Receivables include:

$$350,000$ Amount owed by customers

$(45,000)$ Allowance for uncollectible accounts from customers

$20,000$ Prepaid advertising

$110,{000}_{?}$ Short$-$term loan receivable due September $2024$

$$435,000$ Total receivables

Payables consist of:

$$500,000$ note payable due June $30,2024$

$900,000$ bonds payable maturing $12/31/2030$

$600,000$ loan payable maturing May $31,2028$

$60,000$ due to suppliers for merchandise and services on account

$17,000$ received from a customer for merchandise to be provided in January $2024.$

$$2,077,000$ Total payables

On December $30,$ the board of directors declared a cash dividend of $$0\mathrm{.}16$ per share on its common

stocks outstanding payable January $20,2024.$ This transaction was not recorded in the company's

accounts

Cash includes the following:

$$40,000$ Cash in a checking account at Peoples Bank

$91,000$ Cash in a savings account at First Bank representing a

compensating balance for a long$-$term loan at this bank

$20,700$ Restricted cash in a savings account to pay bonds maturing $12/31/2030$

$19,700$ Undeposited customers' checks

$600$ Currency and coins in the office

$$172,000$ Total cash

The patent was purchased July $1,2020$ with a $10-$year useful life. However, this asset was

never amortized. Amortization of patents is considered a selling expense.

Two million shares of $$4$ par value common stock are authorized of which $225,000$ shares were issued

and outstanding.

On December $14,2023$ a customer paid $$120,000$ in advance for merchandise to be delivered January $16,2024.$

The cost of this merchandise is $$80,000.$ The accountant incorrectly recorded the amounts in sales revenue

and cost of goods sold respectively. These amounts are considered significant.

Assume an income tax rate of $21\%.$

Required:

Use Microsoft Excel to prepare the following $2023$ financial statement for ABC Corporation:

A$.$ Classified balance sheet.