Using the worksheets that follow this one, prepare in good form: (read notes at bottom also) 2018 Year-End Financial Statements for Botswana Tea Company, Inc. 1.) Multi-step Income Statement Instructions: 2.) Classified Balance Sheet 3.) Statement of Retained Earnings Accounts payable 4400 31.250 252,600 Accounts receivable Accumulated depreciation - building Accumulated depreciation-store equipment 25,500 4,020 Allowance for bad debts Amortization expense 725 Bad debt expense 3,600 Bank overdraft Bonds payable 2.500 130,000 Building 348,000 Cash 36,780 Cash surrender value of life insurances 3 Common stock, $2 par 15,000 135 400 245.520 Cost of goods sold Depreciation expense- building Depreciation expense- store equipment Discount on bonds payable Dividends 13,500 6,000 10,000 25,000 Gain on disposition of plant asset 28,465 Goodwill 28,000 2 Income from Water Division (discontinued) 1 Income tax expense (for income from continuing operations) 18,500 19.300 1,200 1,100 Insurance expense Interest expense 200 Interest payable Land 60,000 14,050 Land held for future use 6,200 2 Loss on disposal of Water Division 16.800 Merchandise inventory 10,000 25,000 6,400 40,600 Notes payable, due June 15, 2019 Notes payable, due May 20, 2020 Office rent expense Paid in capital in excess of par, common stock 7,500 Patent 800 Prepaid insurance 12,630 Rent revenue Retained earnings, January 1, 2018 Sales discounts 49,690 12,140 395,000 Sales revenue Store equipment 162,500 Supplies Supplies Expense Unearned revenue Utilities expense Wages & salaries expense office Wages & salaries expense- selling 440 600 15,000 2,200 30,000 44,800 1. This account represents the income tax expense for continuing operations. 2. The company disposed of their flavored water division this year. The account balances above are shown net of the applicable income tax: Notes: Income tax expense applicable to Water Division income: $5,750 Income tax expense applicable to Water Division disposal: $1,480 3. All stock is both issued and outstanding. Expenses related to the store and to selling are listed as selling expenses 4. (Most of the expenses are administrative.) Using the worksheets that follow this one, prepare in good form: (read notes at bottom also) 2018 Year-End Financial Statements for Botswana Tea Company, Inc. 1.) Multi-step Income Statement Instructions: 2.) Classified Balance Sheet 3.) Statement of Retained Earnings Accounts payable 4400 31.250 252,600 Accounts receivable Accumulated depreciation - building Accumulated depreciation-store equipment 25,500 4,020 Allowance for bad debts Amortization expense 725 Bad debt expense 3,600 Bank overdraft Bonds payable 2.500 130,000 Building 348,000 Cash 36,780 Cash surrender value of life insurances 3 Common stock, $2 par 15,000 135 400 245.520 Cost of goods sold Depreciation expense- building Depreciation expense- store equipment Discount on bonds payable Dividends 13,500 6,000 10,000 25,000 Gain on disposition of plant asset 28,465 Goodwill 28,000 2 Income from Water Division (discontinued) 1 Income tax expense (for income from continuing operations) 18,500 19.300 1,200 1,100 Insurance expense Interest expense 200 Interest payable Land 60,000 14,050 Land held for future use 6,200 2 Loss on disposal of Water Division 16.800 Merchandise inventory 10,000 25,000 6,400 40,600 Notes payable, due June 15, 2019 Notes payable, due May 20, 2020 Office rent expense Paid in capital in excess of par, common stock 7,500 Patent 800 Prepaid insurance 12,630 Rent revenue Retained earnings, January 1, 2018 Sales discounts 49,690 12,140 395,000 Sales revenue Store equipment 162,500 Supplies Supplies Expense Unearned revenue Utilities expense Wages & salaries expense office Wages & salaries expense- selling 440 600 15,000 2,200 30,000 44,800 1. This account represents the income tax expense for continuing operations. 2. The company disposed of their flavored water division this year. The account balances above are shown net of the applicable income tax: Notes: Income tax expense applicable to Water Division income: $5,750 Income tax expense applicable to Water Division disposal: $1,480 3. All stock is both issued and outstanding. Expenses related to the store and to selling are listed as selling expenses 4. (Most of the expenses are administrative.)