Required: Prepare a multiple-step income statement in good form. (Include EPS) C
ID: 2395657 • Letter: R
Question
Required: Prepare a multiple-step income statement in good form. (Include EPS)
Calculate retained earnings as of December 31, 2018.
Prepare a classified balance sheet in good form.
Calculate working capital.
Thornhill Companies
Trial Balance
As of December 31, 2018
Cash
$ 9,000
$ -
Accounts Receivable
150,000
Inventory
100,000
Prepaid Rent Expense
18,000
Land
100,000
Plant
500,000
Equipment
1,000,000
Franchises
200,000
Dividends
25,000
Cost of Goods Sold
1,200,000
Selling Expenses
200,000
Administrative Expenses
250,000
Interest Expense
30,000
Income Taxes Expense
20,000
Accumulated Depreciation
250,000
Accounts Payable
98,000
Income Taxes Payable
5,000
Unearned Sales Revenues
74,000
Bonds Payable
600,000
Common Stock (100,000 shares)
750,000
Retained Earnings (January 1, 2018)
225,000
Sales
1,800,000
Total
0
$ 3,802,000
$ 3,802,000
Thornhill Companies
Trial Balance
As of December 31, 2018
Cash
$ 9,000
$ -
Accounts Receivable
150,000
Inventory
100,000
Prepaid Rent Expense
18,000
Land
100,000
Plant
500,000
Equipment
1,000,000
Franchises
200,000
Dividends
25,000
Cost of Goods Sold
1,200,000
Selling Expenses
200,000
Administrative Expenses
250,000
Interest Expense
30,000
Income Taxes Expense
20,000
Accumulated Depreciation
250,000
Accounts Payable
98,000
Income Taxes Payable
5,000
Unearned Sales Revenues
74,000
Bonds Payable
600,000
Common Stock (100,000 shares)
750,000
Retained Earnings (January 1, 2018)
225,000
Sales
1,800,000
Total
0
$ 3,802,000
$ 3,802,000
Explanation / Answer
Part A
Thornhill Companies
Income statement
For the Year Ended December 31 2018
Part B
Part C
Thornhill Companies
Balance sheet
December 31, 2018
Total stockholders' equity
Total liabilities and stockholders' equity
1050000
1827000
Sales 1800000 Less: cost of goods sold 1200000 Gross profit 600000 Less: Operating expenses : Selling expenses 200000 Administrative expenses 250000 Total operating expenses 450000 Operating income 150000 Other income (expenses) Less: Interest expense 30000 Income before taxed 120000 Less: Income tax expense 20000 Net income 100000 Earnings per share (100000/100000shares) 1.00Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.