Question
Presented below is a list of the accounts and balances of Wildcat Corporation at December 31, 2018. Debit Credit Accounts Payable 212,000 Accounts Receivablle 295,000
Presented below is a list of the accounts and balances of Wildcat Corporation at December 31, 2018.
Debit Credit
Accounts Payable | 212,000 | |
Accounts Receivablle | 295,000 | |
Accrued Liabilities | 35,000 | |
A/D-Buildings | 82,000 | |
A/D-Equipment | 28,000 | |
Additional Paid-in Capital | 55,000 | |
Administrative Expenses | 480,000 | |
Advances to Employees | 12,500 | |
Allowance for Doubtful Accounts | 15,500 | |
Bonds Payable (1/4 due 2019) | 400,000 | |
Buildings | 490,000 | |
Cash - Chase Bank | 15,000 | |
Cash - Fifth Third Bank | 198,500 | |
Common Stock ($10 par) | 600,000 | |
Copyrights | 75,000 | |
Cost of Goods Sold | 2,895,000 | |
Dividends | 60,000 | |
Equipment | 350,000 | |
Gain on Sale of Assets | 29,000 | |
Goodwilll | 120,000 | |
Income from operations of discontinued division | 85,000 | |
Income Tax Expense | 118,200 | |
Income Taxes Payable | 118,200 | |
Interest Expense | 115,000 | |
Inventories | 310,000 | |
Investments in Bonds | 175,000 | |
Investments in Stocks | 115,000 | |
Land | 150,000 | |
Long-term Notes Payable | 350,000 | |
Loss from disposal of division | 110,000 | |
Prior Period Adjustment -- Benefits Expense | 60,000 | |
Retained Earnings | 197,000 | |
Sales | 5,125,000 | |
Selling Expenses | 1,245,000 | |
Short-term Notes Payable | 30,000 | |
Trading Securities (at cost, $76,500) | 90,000 | |
Treasury Stock (2,500 shares) | 32,000 | |
Totals | 7,436,000 | 7,436,000 |
Note: Assume a 30% effective tax rate on all items for the year. A preliminary estimate of accrued income taxes has been recorded and is included in the trial balance above. If this is not the correct amount of tax expense, you will need to make an additional adjusting entry. Investments in Bonds are considered "held to maturity"; Investments in Stocks are considered "available for sale" Required: PREPARE THE FOLLOWING STATEMENTS IN GOOD FORM 1. Multi-step Income Statement with EPS calculations. 2. Statement of Stockholder's Equity (no new shares were issued during the year) 3. Classified Balance Sheet (All statements should be prepared according to GAAP and in "good form" (proper format, alignment, spelling, $ signs, underlines, etc.))
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started