Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show both the common AP5-3 LO5-3 Preparing Both an Income Statement and a Balance Sheet from a Trial Balance (P5-6) Dynamite Sales (organized as a

image text in transcribed
image text in transcribed
show both the common AP5-3 LO5-3 Preparing Both an Income Statement and a Balance Sheet from a Trial Balance (P5-6) Dynamite Sales (organized as a corporation on September 1, 2013) has completed the accounting cycle for the second year, ended August 31, 2015. Dynamite also has completed a correct trial balance follows: DYNAMITE SALES Trial Balance At August 31, 2015 Debit Credit Account Titles $ 47,700 38,320 270 27,000 $ 9,000 2,700 900 16,225 Cash Accounts receivable Office supplies Company vehicles (delivery vans) Accumulated depreciation, company vehicles Equipment Accumulated depreciation, equipment Accounts payable Income taxes payable Salaries payable Long-term debt Capital stock (par SI: 29,000 shares) Paid-in capital Retained earnings (on September 1, 2014) Dividends declared and paid during the current year Sales revenue Cost of goods sold Operating expenses (detail omitted to conserve time) Depreciation expense (on vehicles and equipment) Interest expense Income tax expense (not yet computed) Totals 1,350 25,000 29,000 4,500 6,615 7,200 81.000 27.000 16,200 4.950 2.250 $173,590 $173 590 Required: Complete the financial statements, as follows: a. Classified (multiple-step) income statement for the reporting year ended August 31, 2015. Inco income tax expense, assuming a 30 percent tax rate. Use the following subtotals: Gross Profit. 10 Operating Expenses, Income from Operations, Income before Income Taxes, and Net Income. show EPS. h. Classified balance sheet at the end of the reporting year, August 31, 2015. Include (1) income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings. Use the follow- ing captions (list each item under these captions). Assets Current assets Noncurrent assets Stockholders' Equity Contributed capital Retained earnings Liabilities Current liabilities Long-term liabilities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And GRC Automation In SAP

Authors: Maxim Chuprunov

1st Edition

3642353010, 9783642353017

More Books

Students also viewed these Accounting questions