The company uses the periodic inventory system. A physical count of inventory on December 31 resulted in an inventory amount of $50,000.

Instructions:

1. Prepare an income statement for the year ending December 31, 2019. Assume that twenty thousand shares of common stock were outstanding the entire year.
   1. using the Multi-Step form.
   2. using the Single-Step form.

2. Prepare a retained earnings statement for the year ending December 31, 2019.

3. Prepare a Statement of Financial Position as at December 31, 2019.
   1. Report Form
   2. Account Form

4. Calculate Earnings Per Share for the year ending December 31, 2019.

Smart Corporation ADJUSTED TRIAL BALANCE December 31, 2019 Debits Credits 1,437,750 - 120,000 132,750 76,500 46,500 15,750 26,250 12,000 285,000 193,500 21,000 360,000 33,000 112,500 450,000 102,000 105,000 9,750 Sales Notes Receivable Investments (short Term) Accounts Payable Accumulated Depreciation Equipment Sales Discounts Sales Returns Purchase Discounts Cash Accounts Receivable Rent Revenue Retained Earnings Salaries Payable Notes Payable Common Stock, $15 par Income Tax Expense Cash Dividends Declared Allowance for Doubtful Accounts Supplies on Hand Freight-In Short term Investment Freight-out Sales commission Correction for understatement of prior period net income inventory error) Other Operating Expenses (30% Selling, 70% Administrative) Land Provision for Bad and Doubtful Account Equipment Merchandise Inventory Building Purchases Dividend Income Loss on Sale of Investment Interest Revenue Interest Expense Bonds Payable Gain on Sale of Land Accumulated Depreciation - Building Accumulated Depreciation - Land Totals 16,500 24,000 75,000 22,500 318,000 75,000 171,000 97,500 51,000 195,000 118,500 156,000 750,000 37,500 19,500 13,500 18,750 150,000 36,750 30,000 9,750 2,962,500 2,962,500