P5-6 Preparing Both an Income Statement and a Balance Sheet from a Trial Balance LO5-3 (The following information applies to the questions displayed below) Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended March 31, 2 JORDAN SALES COMPANY Trial Balance At March 31, 2016 Account Titles Debit Credit $ 58,100 Cash 49,400 Accounts receivable Office supplies inventory 2,000 Automobiles (company cars) 34,500 Accumulated depreciation, automobiles $ 13,600 Office equipment 3,900 Accumulated depreciation, office equipment 1,400 Accounts payable 21100 Income taxes payable Salaries and commissions payable 1,600 Note payable, long-term 32,800 Capital stock (par $132.300 shares) 32,300 Paid-in capital 4,300 Retained earnings (on April 1, 2015) 6,500 Dividends declared and paid during the current year 11,500 Sales revenue 106,100 Cost of goods sold 32,400 Operating expenses (detail omitted to conserve time) 19,000 Depreciation expense (on autos and including $300 on office equipment) 7,700 Interest expense 1.200 Income tax expense (not yet computed) Totals $ 219,700 $ 219,700 References P5-6 Parta Required: Complete the financial statements as follows: a. Classified (multiple-step) income statement for the reporting year ended March 31, 2016. Include income tax expense, assuming a 40 percent tax rate. JORDAN SALES COMPANY Income Statement $ 104,200 32.900 71,300 Sales revenue Cost of goods sold Gross profit Operating expenses: Operating expenses Depreciation expense 18,100 7,200 1 25,300 Total operating expenses Income from operations Interest expense Income taxes payable Income tax expense Net income Earnings per share b. Classified balance sheet at the end of the reporting year, March 31, 2016. Include (1) income taxes for the current year in Income Ta JORDAN SALES COMPANY Balance Sheet TTTTTTTTTT TTTTTTT IITTI IIIIII IIIIIII IIIIII 1 / / / /