FALL 2017 ACCT 300 INTERMEDIATE ACCOUNTING 1 Homework assignment for Chapters 4 and 5. Due on Thursday October 10, 2017 at 5.00 pm o1. Presented below are selected account balances of Sandra Company at the end of its fiscal year on June 30, 2017 Rental revenue Interest expense $6,000 50,000 280,000 110,000 30,000 $8,000 Dividends paid 9,500 Selling expenses 6,400 Sales revenue 1,000 Cost of goods sold ainBeginning retained earnings Dividend revenue Discontinued operations loss Flood damage loss - 3,000- Administrative expenses 4,500 Depreciation overstatement 2,000 Additional facts are as follows: i) The discontinued operations loss was net of tax ii) Depreciation understatement of $2,000 (net of tax) stated above arose from an internal audit discovery of an error in the computation of depreciation expense in a prior year iii) Applicable statutory income tax rate for all items is 35%. Instruction From the above figures and additional facts, prepare a multiple-step income statement and a retained earnings statement for the fiscal/financial year ended on June 30, 2017 Bn 2. Given the following account information for Equity Corporation, prepare a balance sheet in report form for the company as of December 31, 2016. All accounts have normal balances 260,000 6,800 Equipment Interest Payable Retained Earnings 31/12/2016 Land Accounts Receivable Bonds Payable Notes Payable (due in 8 months) Common Stock Preferred Stock Accumulated Depreciation - Equip. Prepaid Advertising Buildings Supplies Income Taxes Payable Salaries and Wages Payable Accumulated Depr. Bld. Cash 175,000 62,000 45,000 30,000 420,000 270,000 23,400 18,000 350,000 9,000 8,500 33,500 10,500 65,000 3. Preparation of a cash flow statement; P5-7 (only part a of instructions) on page 251