Instructions: (85 points)
1.	Prepare a multi-step Income Statement in proper form concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000. (19 pts) Also show computations of Cost of Goods Manufactured and Sold. (12 pts)
2. Prepare a Statement of Retained Earnings in proper form. (5 pts)
3. Prepare a classified Balance Sheet in proper form. (23 pts)
4. Answer the following questions: (26 pts)
a.	Briefly describe two transactions that change the accumulated depreciation account? (2)
b.	What kind of cost is factory overhead? (1)
c.	Give a specific example of unearned revenue. (1)
d.	What caused the gain on sale of investments specifically? (2)
e.	Why does Post Company use the equity method to account for Investment in Lifecare stock? (1)
f.	Briefly describe what transaction causes your gross accounts receivable balance to decrease? (1)
g.	Briefly describe what transaction causes your paid-in-capital in excess of par to increase? (2)
h.	Specifically, what kind of an account is goodwill? (1)
i.	What is the Allowance for Doubtful accounts for? (2)
j.	Briefly describe the account retained earnings. Dont copy a definition! (2)
k.	What causes the balance of retained earnings to change (at least 2 things)? (2)
l.	What account on Post Company balance sheet does interest expense relate to and why? (2)
m.	List 2 of Post Company's period costs. (2)
n.	What kind of company is Post Company service, merchandising or manufacturing and how do you know? (2)
o.	How would the financial statements change if the Post Company was one of the other types of companies? (Talk about the two you didnt pick in n.) (3)

4,300,700 50,000 165,000 42,000 25,000 730,000 205,000 Office Buildings and Equipment Office rent expense Office salaries expense Office supplies expense Paid-in capital from sale of treasury stock Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Preferred 5% stock, $100 par (30,000 shares authorized; 19,250 shares issued) Prepaid advertising Purchase of Materials Retained earnings, January 1, 2019 Salaries Payable Sales Sales personnel commissions Sales Salaries expense Supplies Used-Factory Trading Securities (at cost) Treasury Stock (3,900 shares of common stock at cost of $32.50 per share) Unearned Revenue Unrealized loss on available-for-sale investments Unrealized gain on trading securities Utilities-Factory Valuation allowance for available-for-sale investments (credit) Valuation allowance for trading securities (debit) Work in Process Jan 1, 2019 Work in Process Dec 31, 2019 1,925,000 21,000 1,160,000 6,463,150 53,100 5,261,550 82,000 225,000 65,000 130,000 126,750 25,500 15,000 8,000 450,000 15,000 3,500 192,000 225,000 The market price for a share of Post Company common stock on Dec. 31, 2019 is: $34.25 Accounts Receivable (net), Jan 1, 2019 Total Assets, Jan 1, 2019 Total Stockholder's Equity, Jan 1, 2019 440,000 13,450,225 12,200,000 310,000 353,000 2,180,000 4,126,000 150,000 10,150 115,250 400,000 249,650 2,164,250 39,000 380,000 121,000 1,580,000 55,000 Accounts Payable Accounts Receivable Accumulated Depreciation - Office buildings and equipment Accumulated Depreciation - Factory buildings and equipment Advertising Expense Allowance for Doubtful accounts Available-for-sale investments (at cost) short term Bonds Payable, 6%, due 2028 Cash Common Stock, $25 par (400,000 shares authorized; 86,570 shares issued, 82,670 outstanding) Delivery Expense Depreciation Expense - Factory buildings and equipment Depreciation Expense - Office buildings and equipment Direct Labor Discount on bonds payable Dividends: Cash Dividends for Common Stock Cash Dividends for Preferred Stock Stock Dividends for Common Stock Dividend Revenue Factory Buildings and Equipment Factory Supervisors Salaries Finished Goods Jan 1, 2019 Finished Goods Dec 31, 2019 Gain on Sale of investment Goodwill Income from Lifecare Co. investment Income tax expense Income tax payable Indirect manufacturing Labor Interest expense Interest receivable Interest Revenue Investment in Lifecare Co. stock (equity method) Investment in Nordic Wear Inc. Bonds (long term) Materials Jan 1, 2019 Materials Dec 31, 2019 Miscellaneous administrative expense Miscellaneous selling expense 105,120 95,000 62,800 33,575 11,170,025 330,000 275,000 225,000 12,500 475,000 65,600 128,500 55,000 75,000 39,000 15,930 17,000 640,100 226,800 350,000 255,000 12,500 13,750