Background

It is early 2017 and you have just been hired as the financial reporting guru for TECHNOGYM, a diversified exercise/fitness corporation that has just finished a very fast-paced, dynamic year. TECHNOGYM began as the sole distributor of TechTone, a full-body fitness machine sold to fitness centers and hospitals. This remains the main operation of TECHNOGYMs business.

Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2016 year-end financial statements. Luckily, there is still time to make any necessary adjusting and closing journal entries for the 2016 fiscal year. Throughout the semester you are working on different aspects of the companys financial records relating to: discontinued operations, revenue recognition, accounts receivable, and inventory. As you are working on the 2016 year-end, you are also reviewing the first quarter 2017 journal entries and will make any necessary correcting journal entries.

Part 1 Requirements (18 points):

A. Using information in the 2016 preliminary adjusted trial balance (BELOW), prepare the adjusting journal entry for Income Tax Expense for the full year 2016.

B. Using information in the 2016 preliminary adjusted trial balance, combined with the adjusting entry for income taxes you did above, prepare the 2016 closing journal entries for TECHNOGYM.

C. Using information in the 2016 preliminary adjusted trial balance, combined with the adjusting entry for income taxes you did above, prepare the 2016 Balance Sheet and Income Statement for TECHNOGYM. The Balance Sheet must be classified and the Income Statement must be multi-step. Both must be comparative, with columns for the appropriate number of years. Remember this is a public reportit should be formatted appropriately (labeled, values aligned, single page, etc.).

Please answer correctly and completely for parts A, B and C. Will give thumbs up immediately and good feedback! Thank you!

TECHNOGYM Adjusted Trial Balance December 31, 2016 Discontinued Ops Continuing Ops Credit Credit Credit it 12,730,908 18,187,500 it 12,606,258 18,187,500 124,650 Cash Accounts Receivable Allowance for Doubtful Accounts Income Tax Refund Receivable Inventory LIFO Reserve Purchases Construction in Progress Billings on Contracts Property, Plant & Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Notes Payable-Noncurrent Common Stock Retained Earnings Tech Tone Sales Revenue Sales Returns Building Revenues Loss on Sale of Discontinued Operation Cost of TechTone Equipment Sold Costs of Construction Bad Debt Expense Depreciation Expense Interest Expense General and Admin Expenses Income Tax Expense/(Benefit] TOTAL 862,769 862,769 20,060,000 20,060,000 175,000 175,000 31,200,000 31,200,000 32,000,000 52,800,000 52,800,000 43,680,000 17,640,000 2,659,914 43,680,000 17,640,000 2,659,914 30,000,000 1,500,000 3,439,340 140,482,500 30,000,000 16,632 19,994,900 3,422,708 120,487,600 280,965 39,990 240,975 13,751,000 13,751,000 125,200 68,447,500 15,151,500 842,768 12,000,000 905,215 53,458,967 125,200 10,270,000 58,177,500 15,151,500 842,768 10,560,000 905,215 45,447,275 1,440,000 8,011,692 20,011,532 -U,01i,532 20,011,532 266,178,991-2 266,178,991 0,150,32 = Income Tax Rate 34% Common Shares of Stock Outstanding 150,000 TECHNOGYM Adjusted Trial Balance December 31, 2016 Discontinued Ops Continuing Ops Credit Credit Credit it 12,730,908 18,187,500 it 12,606,258 18,187,500 124,650 Cash Accounts Receivable Allowance for Doubtful Accounts Income Tax Refund Receivable Inventory LIFO Reserve Purchases Construction in Progress Billings on Contracts Property, Plant & Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Notes Payable-Noncurrent Common Stock Retained Earnings Tech Tone Sales Revenue Sales Returns Building Revenues Loss on Sale of Discontinued Operation Cost of TechTone Equipment Sold Costs of Construction Bad Debt Expense Depreciation Expense Interest Expense General and Admin Expenses Income Tax Expense/(Benefit] TOTAL 862,769 862,769 20,060,000 20,060,000 175,000 175,000 31,200,000 31,200,000 32,000,000 52,800,000 52,800,000 43,680,000 17,640,000 2,659,914 43,680,000 17,640,000 2,659,914 30,000,000 1,500,000 3,439,340 140,482,500 30,000,000 16,632 19,994,900 3,422,708 120,487,600 280,965 39,990 240,975 13,751,000 13,751,000 125,200 68,447,500 15,151,500 842,768 12,000,000 905,215 53,458,967 125,200 10,270,000 58,177,500 15,151,500 842,768 10,560,000 905,215 45,447,275 1,440,000 8,011,692 20,011,532 -U,01i,532 20,011,532 266,178,991-2 266,178,991 0,150,32 = Income Tax Rate 34% Common Shares of Stock Outstanding 150,000