Question
The ledger of Chacha Vatija Unity Limited contained the following account balances at December 31, 2019, the end of company's fiscal year. Accounts Balances ($)
The ledger of Chacha Vatija Unity Limited contained the following account balances at December 31, 2019, the end of company's fiscal year. Accounts Balances ($) Cash 1720 Accounts Receivable 23000 Inventory 36000 Supplies 1150 Prepaid Rent 9430 Machinery 24000 Accumulated Depreciation-Machinery 9900 Equipment 62900 Accumulated Depreciation-Equipment 7570 Land 75000 Accounts Payable 9800 15% Debenture 30000 Common Stock ($ 2.5 par value) 42000 Additional Paid in Capital-Common Stock 42100 Retained Earnings 59300 Sales 542600 Sales Returns and Allowances 7600 Sales Discount 3600 Salaries Expense 75900 Cost of Goods Sold 385800 Loss from employee strike 4520 Wages Expense 7800 Rent Expense 12450 Interest Expense 3300 Advertising Expense 10000 Rent Revenue 3500 Other Administrative Expense 2600 Additional Data: 1. The accountant has forgot to record the issue of 1,000 common share @ $4.5 each on December 21, 2019. 2. 10% cash Dividend has been declared on the common stock. 3. The company is under 30% tax bracket. 4. Machinery is being depreciated @20% under straight line method, Equipment is being depreciated @30% under reducing balance method. 5. Supplies actually on hand is $ 200. 6. Physical check on December 31, 2019 reveals that inventory actually on hand is $ 35,200. From the above information, prepare the followings: (a) Multistep income statement for the year ending December 31, 2019; (b) Stockholder_s Equity Statement as at December 31, 2019; and (c) Classified Balance Sheet as at December 31, 2019.
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