Kooshner Problem - Ch. 4 Kooshner Thin Mattresses Corp. needs help creating its multiple-step income statement, a statement of stockholders' equity, and closing entries for the year ending December 31, 2017. On the following page is a portion of Kooshner's Adjusted Trial Balance as of December 31, 2017. Additional information about the firm's activities during the year are as follows: 1. Kooshner operates under a 30% tax rate. 2. Kooshner started the year with 10,000 shares of $3 par value common stock and a beginning balance in APIC-Common of $145,200. On January 1, 2017, the company issued an additional 37,000 shares of common stock for $7 per share. 3. EPS should be calculated based on the number of common shares on hand after the new stock is issued on January 1, 2017. INSTRUCTIONS: a. Prepare a properly formatted and labeled multiple step income statement and statement of stockholders' equity for Kooshner for the year ended December 31, 2017. b. Prepare the entire set of closing entries for Kooshner for the year ended December 31, 2017. NOTE: To complete the closing entries, you will need to calculate and close out the balance for Income Tax Expense, an account that is not included in the trial balance. There is no need for a journal entry to create the income tax expense balance initially. Kooshner Thin Mattresses Corp. Adjusted Trial Balance (Partial) For the Year Ending December 31, 2017 1,200,950 Beginning bal. 27,000 1,200,895 Retained Earnings Dividends Sales Revenue Sales Discounts Sales Returns and Allowances COGS Sales Salaries Expense Sales Advertising Expense Sales Supplies Expense Depreciation Expense- Sales Fixtures Office Salaries Expense Rent Expense Utilities Expense Office Supplies Expense Depreciation Expense - Office Equipment Insurance Expense Interest Expense Interest Income Dividend Income Gain on Disposal of Plant Assets Unrealized Holding Gain -- Trading Securities Loss on Asset Impairment 9,650 10,040 677,450 52,300 98,700 24,780 13,700 134,590 67,900 31,500 39,900 42,500 23,740 6,700 3,430 3,250 82,250 27,250 9,050