This written homework assignment will be graded on completeness. It will be your responsibility to check your answers for correctness. An answer key will be posted on Canvas on Thursday, September 23, 2021. (You should make a copy of your homework to check your answers for correctness using the posted solution.) The homework assignment will be available for you to pick up during the ACC 301 office hours from 12:00p.m. until 2:30 p.m. on Friday, September 24, 2021, in BE 157 The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on December 31, 2021. During 2021 the Outdoor Corporation sold its river tubing component of the business, the River Rafts Company. The Outdoors Corporation correctly accounted for the sale as a discontinued operation Account Debit Credit Accounts payable $ 13,700 Accounts receivable $ 43,000 Accumulated depreciation - equipment 30,500 Additional paid-in capital - common stock 87,000 Advertising expense 13,000 Allowance for doubtful accounts 3,000 Bad debt expense 1,500 Cash 24,600 Common stock, $5 par 65,000 Cost of goods sold 384,000 Depreciation expense (60% selling, 40% administrative) 14,000 Dividends 4,500 Dividend revenue 1,000 Equipment 143,600 Held-to-maturity debt securities, due 5/31/24 38,000 Income tax expense ?? Income tax payable ?? Interest expense 4,000 Interest revenue 2,300 Inventory 52,900 Land held for future use 135,100 Loss on sale of equipment 5,800 Marketable equity securities 22.700 Miscellaneous expense (70% selling, 30% administrative) 29,000 Note payable - due May 31, 2027 73.700 Prepaid insurance 1,900 Rent expense (80% selling, 20% administrative) 174,000 Retained earnings, 1/1/21 93,900 Salaries expense (20% selling, 80% administrative) 205,000 Sales revenue 1,127,000 Sales commission expense 168,000 Sales returns and allowances 32,500 Trading debt securities 22,000 Treasury stock 9,000 Unearned sales revenue 3,000 (1) Management of the Outdoors Corporation does not plan to sell the marketable equity securities in 2022. The Outdoors Corporation has less than a 20% ownership in the equity securities (2) As previously mentioned, during 2021 the Outdoors Corporation disposed of River Rafts Company, the river tubing component of its business. River Rafts Company had operated at a before-tax loss of $12,000 in 2021. The Outdoors Corporation disposed of the river tubing component at a before-tax gain of $40,000. These amounts were not included in the income statement accounts shown on page 1. (3) The Outdoors Corporation classifies its Bad Debt Expense as Seling Expenses. (4) The Outdoors Corporation did not pay any estimated taxes in 2021. (5) The effective income tax rate for 2021 was 20% (6) You are not required to calculate earnings per share for the year ended December 31, 2021. REQUIRED: On this page and the following pages prepare in good form the Outdoor Corporation's multiple-step Income Statement for the year ended December 31, 2021, Retained Earnings Statement for the year ended December 31, 2021, and its classified Balance Sheet at December 31, 2021. Remember to include the correct heading for each financial statement. These financial statements must be personally handwritten (not typed, pasted, photocopied, or printed from an -Pad, etc.) on this page and the next three pages. This assignment must be submitted at the beginning of class on Wednesday, September 22, 2021. Multiple-Step Income Statement: Multiple-Step Income Statement Continued: Fall 2021 Page 3 of 5 detained Earnings Statement: UWORK Assignment Fall 2021 Page 4 of 5 Classified Balance Sheet Classified Balance Sheet - Continued: BET 3 Wenno Fall 2021 Page 4 of 5
