COMPREHENSIVE PROBLEM Mountain Sports, Inc. the accoand.) cal onder, as s 12,750 12.000 1 3,000 22,500 Bonds payable (folue December 31, 2021) Common stock (1,800 sharesS10 par value) Cost of goods sold 100,575 5,750 2.750 5.000 8.190 900 39,500 17,500 2,500 41,000 900 520 5,000 1.750 1,800 6,100 21,050 88,095 226,000 2,500 Merchandise Inventory Notes payable (due December 31, 2019) Office equipment Office supplies Offce supples expense Preferred stock (250 shares, $20 par value) Premium on bonds payable. Prepald rert Rent expense Retained earnings (January 2018) Selaries expense Sales Sales returns and allowances Sales taxes payable 3,200 Treasury stock (200 common shares at cost) Ublities expense 2,250 4.120 Instructions a. Prepare an income statement for the year ended December 31, 2018, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. Prepare a statement of retained earnings for the year ending December 31, 2018. Prepare a statement of financial position (balance sheet) as of December 31, 2018, following b. c. these guidelines: Include separate asset and liability categories for those items that are "current." Include and label amounts for total assets, total liabilities, total stockholders' equity, and total liabilities and stockholders' equity Present deferred income taxes as a noncurrent liability. To the extent information is available that should be disclosed, include the parenthetical disclosure of that information. COMPREHENSIVE PROBLEM Mountain Sports, Inc. the accoand.) cal onder, as s 12,750 12.000 1 3,000 22,500 Bonds payable (folue December 31, 2021) Common stock (1,800 sharesS10 par value) Cost of goods sold 100,575 5,750 2.750 5.000 8.190 900 39,500 17,500 2,500 41,000 900 520 5,000 1.750 1,800 6,100 21,050 88,095 226,000 2,500 Merchandise Inventory Notes payable (due December 31, 2019) Office equipment Office supplies Offce supples expense Preferred stock (250 shares, $20 par value) Premium on bonds payable. Prepald rert Rent expense Retained earnings (January 2018) Selaries expense Sales Sales returns and allowances Sales taxes payable 3,200 Treasury stock (200 common shares at cost) Ublities expense 2,250 4.120 Instructions a. Prepare an income statement for the year ended December 31, 2018, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. Prepare a statement of retained earnings for the year ending December 31, 2018. Prepare a statement of financial position (balance sheet) as of December 31, 2018, following b. c. these guidelines: Include separate asset and liability categories for those items that are "current." Include and label amounts for total assets, total liabilities, total stockholders' equity, and total liabilities and stockholders' equity Present deferred income taxes as a noncurrent liability. To the extent information is available that should be disclosed, include the parenthetical disclosure of that information
