ACCT-201 - Practice Exam 2 Problem 1 Jordan Sales Company (organized as a corporation on April 1, 2017) has completed the accounting cycle for the second year, ended March 31, 2019. Jordan also has completed a correct trial balance as follows: Credit Debit $ 58,000 49,000 1,000 34,000 $ 14,000 3,000 JORDAN SALES COMPANY Trial Balance At March 31, 2019 Account Titles Cash Accounts Receivable Office Supplies Inventory Automobiles (company cars) Accumulated Depreciation, Automobiles Office Equipment Accumulated Depreciation, Office Equipment Accounts Payable Income Taxes Payable Salaries and Commissions Payable Notes Payable, Long-term Capital Stock (par $1; 33,000 shares) Paid-in Capital Retained Earnings (on April 1, 2018) Dividends Declared and Paid During the Current Year Sales Revenue Cost of Goods Sold Operating Expenses (detail omitted to conserve time) Depreciation Expense (on autos and including $500 on office equipment Interest Expense Income Tax expense (not yet computed) Totals 1,000 22,000 0 2,000 33,000 33,000 5,000 7,500 10,500 99,000 33,000 19,000 8,000 1,000 toleoperating spense $216.500 $216,500 Complete the financial statement as follows: a. Classified multiple-step) income statement for the reporting year ended March 31,2019, Include income tax expense assuming a 25 percent tax rate. Use the following subtotals: Gross Profit, Total Operating Expenses, Income from Operations, Income before Income Taxes, and Net Income and show EPS. b. Classified balance sheet at the end of the reporting year, March 31, 2019. Include (1) income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings, Uses the following Captions (list each item under these captions) Liabilities Stockholders' Equity Current Assets Current Liabilities Contributed Capital Noncurrent Assets Long-term Liabilities Retained Earnings al Go profit equal opp0-533,000 Assets