Financial & Managerial Accounting (16th Edition)

Chapter 11, Problem 1CP

Can you provide a solution?

WMinn Retail, Inc. McMinn Retail. Inc. is a retailer that has engaged to assist in the preparation of its financial statements at December 31: 2011. Following are the correct adjusted acccunt balances, alphabetical as ofthat date. Each balance is the "normal" balance for that account (Hint The normal" balance is the same as the debit or credit side that increases the account) Accounts p Accounts 31 , Cor.-' stock ( $10 of _ D Mdend3 Ins Wrch Not 3' , 2012) Off" G4ense... s t Ek par . rent. S 12,750 12,000 22,SCx) 18.000 '03,575 5.750 37 2,250 4,120 a. Prepare an income statement for the year ended December 31.2011 which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than ccst of gocSs sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. b. Prepare a statement of retained earnings for the year ending December 31 , 2011. c. Prepare a statement of financial position (balance sheet) as of December 31, 2011 , following these guidelines Include separate asset and liability categories for those assets which 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 liabilt'l To the extent information is available that should be disclosed, include that information in pur