At the end of the year, Eveready Electric Inc. has adjusted Trial balance.

$-$ The expansion into HVAC did not go as planned and had to be discontinued.

$-$ Below is the updated and correct balances taking into consideration the transactions happened during the year $($including day$-$to$-$day transactions and the transactions above$).$

$-$ Complete the list by filling in the missing values from the journal entries you created during the year.

$*$Interest payable, interest receivable $,$and interest revenue balances are from the bonds issued and purchased during the year. Interest expense from bank loan are paid within the year.

Assume the tax rate is $27\%.$ Assume income tax has already been paid. You will just have to calculate the income tax expense on the income statement.

$27$

Eveready Electric Inc.

Adjusted Trial Balance

December $31,2023$

Account Title Debit Credit

Cash $$184,612$

Accounts Receivable $$38,720$

Interest Receivable $$5,513$

Prepaid Insurance $$10,780$

Short$-$Term Investment $-$ Citi Inc. $$265,600$

Short$-$Term Investments $-$ Bonds $$105,000$

Valuation Allowance for Fair Value Adjustment $$45,900$

Inventory $$115,720$

Investment in HSBC Inc. Common shares $$679,440$

Long$-$Term Investment $-$ Bond $$105,000$

Discount on Bonds $$26,358$

Property, Plant & Equipment $$260,000$

Accumulated Depreciation $$98,0001316$

Accounts Payable $$247,20044,917$

Interest Payable $$44,917$

Unearned Revenue $$21,000$

Premium on Bonds

Bonds Payable $$490,000$

Bank Loan $$225,000$

Common Shares $$355,000$

Preferred Shares $$160,000$

Retained Earnings $$62,800$

Interest Revenue $$10,238$

Revenue from Investment in HSBC Inc. $$139,200$

Unrealized Gain on Fair Value Adjustment $$45,900$

Income Tax Savings $-$ Discontinued Operations $$14,850$

Sales Revenue $$741,000$

Sales Discounts $$22,230$

Sales Returns and Allowances $$37,050$

Cost of Goods Sold $$311,220$

Depreciation Expense $$38,000$

Insurance Expense $$6,200$

Interest Expense $$68,733$

Loss from Discontinued Operations $$55,000$

Maintenance Expense $$31,700$

Professional Fees Expense $$24,000$

Rent Expense $$49,100$

Salaries Expense $$68,400$

Telephone Expense $$5,970$

Travel Expense $$28,700$

Income Tax Expense $-$ Continuing Operations $$66,159$

Unrealized Loss on Fair Value Adjustment $$0$ $$2,655,105$

Total $$2,655,105$ $$2,655,105$ $$2,655,105$ $$0$

Notes:

The bank loan is payable over $9$ years and $$25,000$ will be paid by December $31,2024.$ The interest on this loan is $10\%$ per annum.

$$225,00025000910$

Prepare a multistep income statement for the year ending December $31,2023.$ Round answers to the nearest whole number.

$29$ Marks

Eveready Electric Inc.

Income Statement

For the Year Ended December $31,2023$

$1$

$1$

$2$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$1$

$2$

$1$

$1$

$1$

$1$

$2$

$1$

$29$