Multi- step Income Statement

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Multi- step Income statement ,statement of retained earning and classified balence sheet ,Financial Accounting I 

a)Prepare Multi- step Income statement ,statement of retained earning and classified balence sheet Question:

S.no. Particulars Debit Credit
1 Equipment 112500  
2 Acc. Depn equipmnt   22500
3 Buildings 200000  
4 Acc. Depn buildings   40000
5 Land 250000  
6 Office Supplies 48070  
7 Investment 85000  
8 Cash 13230  
9 Goodwill 40000  
10 Prepaid rent 1500  
11 Account receivable 23450  
12 Account Payable   18255
13 Unearned revenue   10000
14 Salaries payable   10400
15 bonds payable   160000
16 interest payable   1500
17 share capital   150000
18 retined earnings   331485
19 rent exp-sales office 17350  
20 salaries -sales women 23000  
21 sales commission 10250  
22 sales revenue   205000
23 salaries exp-administrative 33375  
24 supplies exp 5525  
25 rent exp-administrative 2700  
26 depreciation expenses 39300  
27 tax expenses 31200  
28 telephone expenses 12690  
29 Total 949140 949140

  Ans:

                           Human Metal Industries
                       Multi-step Income statement
       
Particulars Amount Amount  
       
Sales revenue 205000 205000  
less: Operating expenses      
General and admin expenses      
Salaries expenses 33375    
rent expenses 2700    
telephone expenses 12690    
supplies expenses 5525    
depreciation expenses 39300    
Total general and admin expenses 93590    
       
Selling and distribution expenses      
Rent expenses 17350    
Salaries-sales woman 23000    
sales commision 10250    
Total selling and distribution expenses 50600    
       
Total operating expenses   144190  
Total operating profit   60810  
       
Add: Other income and gains      
Net profit before tax   60810  
Less:Tax expenses   (31200)  
Net profit after tax   29610  

 

Statement of retained earnings    
     
Opening balance of Retained earnings   331485
Add: Net profit 29610  
Less:Dividend paid 361095  
Closing balance of retained earnings   0
     

 

                             Human Metal Industries 
                         Classified Balance Sheet
     
Particulars Amount Amount
     
Asset    
Current Assets    
Office supplies 48070  
Cash 13230  
Prepaid 1500  
Accounts receivable 23450  
    86250
     
Investment   85000
     
Property,plant and equipment    
Equipment 112500  
Less: Acc . Depn equipment 22500  
    90000
building 200000  
less: Acc. Depn building 40000  
    160000
land   250000
     
Total current assets   671250
     
Intangible assets    
Goodwill 40000 40000
     
Total assets   711250
     
Liabilities and Owner’s equity    
Current Liabilities    
Accounts payable 18255  
Salaries payable 10400  
Interest payable 1500  
Unearned revenue 10000  
    40155
     
Long term Liabilities    
Bond’s payable   160000
     
Shareholder’s capital    
Share capital 150000  
Retained Earning 361095  
Total liabilities and owner’s equity   711250
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