Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dadex Corporation provided following information at the end of year 2016. Trial Balance 31 st December 2016 Title of Account Debit Credit Cash Office supplies

Dadex Corporation provided following information at the end of year 2016.

Trial Balance

31st December 2016

Title of Account

Debit

Credit

Cash

Office supplies

A/c Receivable

Merchandise Inventory-beginning

Purchases

Sales discount

Carriage-in

Plant

Accumulated depreciation-Plant

Allowance for bad debts

Short term investment

Accumulated depreciation-Building

A/c Payable

Bank overdraft

Sales revenue

Selling expense

Administrative expense

Financial charges

Long-term loan

Retained Earnings

Capital

Building

75600

5000

175000

63000

475000

12000

15000

600000

55000

65800

60000

18600

500,000

120000

12500

5500

45000

100000

965000

300000

22000

550,000

21,20,000

21,20,000

Additional information:

  1. Merchandise inventory-ending Rs.75000
  2. Depreciation on plant and building at 2% and 3%.
  3. Tax rate is 10%

Required:

1) Prepare Income Statement clearly showing EBIT, EAT. (5)

2) Prepare Classified Balance sheet (5)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Principles And Managerial Applications

Authors: Gerald R. Crowningshield

3rd Edition

0395178371, 978-0395178379

More Books

Students also viewed these Accounting questions