Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Trial Balance TBA Limited contained the following accounts (alphabetically) at December 31, 2020, the end of company's fiscal year. Accounts Balances ($) . .

The Trial Balance TBA Limited contained the following accounts (alphabetically) at December 31, 2020, the end of company's fiscal year. Accounts Balances ($) . . . . ||| . . . . Accounts Balances ($) Accumulated Depreciation-Building. 122000 . . . . ||| . . . . Loss on Sale of Property . . . . 7240 Accumulated Depreciation-Equipment.. 35000 . . . . ||| . . . . Merchandise Inventory . . . 230000 Additional Paid in Capital-Common Stock.. 221000 . . . . ||| . . . . Mortgage Loan . . . . . 105000 Auditors Fee . . . . . . .. .. .. .. 208000 . . . . ||| . . . . Rent Revenue . . . . . . 51000 Buildings. . . . . . .. .. .. .. ... 403000 . . . . ||| . . . . Retained Earnings . . . . 52600 Cash . . . . . . .. .. .. .. .. . 170850 . . . . ||| . . . . Salaries and Wages Expense . . 106000 Common Stock ($2 each). . . . . .. 126000 . . . . ||| . . . . Sales . . . . . . .. .. . 1750000 Cost of Goods Sold . . . . .. . . 1083000 . . . . ||| . . . . Sales Returns and Allowances 9610 Equipment . . . . . . .. .. .. .. 218000 . . . . ||| . . . . Supplies . . . . . . .. . 6200 Interest Expense . . . . . . .. .. . 20700. . . . ||| . . . . Additional Data: 1. On December 31, 2020, Supplies on hand totaled $2500 2. Buildings are being depreciated @10 % under straight line method,Equipment is being depreciated @20% under declining balance method. 3. The company is under 30% tax bracket. 4. The company has declared $0.30000000000000004 dividend per share. 5. Physical check on December 31, 2020 reveals that inventory actually on hand is $216000.

Prepare the followings: (a) Multistep income statement; (b) Stockholder_s Equity Statement (c) Classified Balance Sheet as at December 31, 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions