Norris Corporation's capital structure consists solely of shares of common stock, 50,000 shares of which have been authorized. At 12/31/19, an analysis of the accounts on the adjusted trial balance and discussions with company officials revealed the following information: $ 43,400 135,000 1,500 270,000 470,000 7,500 300,000 33,000 30,000 200,000 976,500 12,000 43,500 60,000 Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Additional paid-in capital Allowance for doubtful accounts Bonds payable (maturity 7/1/24) Bond sinking fund Cash Common stock, $10 par Cost of goods sold Dividend revenue Dividends declared Error in 2017 depreciation, taken in excess General and administrative expenses Interest expense Inventory Land Loss on sale of assets from discontinued business segment, net of tax Machinery and equipment Marketable securities Materials and supplies Patents Retained earnings, 1/1/19 Sales Selling expenses Unearned service revenue Unrealized holding loss on available for sale securities, net of tax 225,000 25,500 187,500 555,000 90,000 675,000 60,000 60,000 150,000 435,000 1,650,000 192,000 16,600 28,000 The following information is also available: The general and administrative expenses include a $50,000 loss incurred from an employee strike in November In February, 2020, before issuance of the financial statements, Norris learns that one of its major customers has filed for bankruptcy. Norris carries receivables of about $10,000 more than had been provided in the allowance. Norris has not yet accrued income tax expense; the applicable rate is 30%. Required: Prepare a multiple step income statement in good form for the year ended 12/31/19, a separate statement of comprehensive income, a statement of retained earnings, and the classified balance sheet at 12/31/19. Norris Corporation's capital structure consists solely of shares of common stock, 50,000 shares of which have been authorized. At 12/31/19, an analysis of the accounts on the adjusted trial balance and discussions with company officials revealed the following information: $ 43,400 135,000 1,500 270,000 470,000 7,500 300,000 33,000 30,000 200,000 976,500 12,000 43,500 60,000 Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Additional paid-in capital Allowance for doubtful accounts Bonds payable (maturity 7/1/24) Bond sinking fund Cash Common stock, $10 par Cost of goods sold Dividend revenue Dividends declared Error in 2017 depreciation, taken in excess General and administrative expenses Interest expense Inventory Land Loss on sale of assets from discontinued business segment, net of tax Machinery and equipment Marketable securities Materials and supplies Patents Retained earnings, 1/1/19 Sales Selling expenses Unearned service revenue Unrealized holding loss on available for sale securities, net of tax 225,000 25,500 187,500 555,000 90,000 675,000 60,000 60,000 150,000 435,000 1,650,000 192,000 16,600 28,000 The following information is also available: The general and administrative expenses include a $50,000 loss incurred from an employee strike in November In February, 2020, before issuance of the financial statements, Norris learns that one of its major customers has filed for bankruptcy. Norris carries receivables of about $10,000 more than had been provided in the allowance. Norris has not yet accrued income tax expense; the applicable rate is 30%. Required: Prepare a multiple step income statement in good form for the year ended 12/31/19, a separate statement of comprehensive income, a statement of retained earnings, and the classified balance sheet at 12/31/19
