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The folowing information is available from the accounting records of Horizon Com

ID: 2523683 • Letter: T

Question

The folowing information is available from the accounting records of Horizon Company for the year e y for the year ended March 31, 2018 Treasury stocks.... Loans payable ($45,000 is to be repaid within a yer.... $100,000 1,795,000 Income 1,747,000 Accounts receivables.... .. 464,000 bolance 199,000 620,000 25,000 Merchandise inventory... Wages payable. . 725,000 Land. 889,000 bance 495,000 770,000 bolance 1,110,000 halance Accumulated depreciation-building 8,313,000 Income Cost of goods sold.. Dividend declared and paid.. Selling Expense. Cash Allowance for bad debt. 4,870,000 Intome 40,000 1,225,000 Income Common Stock, $1 par value Interest expense Research and development expense Additional paid-in capital. …-… 23,000 36,000 700,000 150,000 373,000 378,000 halanc Required: Use Microsoft Excel to prepare the following 2018 financial statements for Horizon Company: a. Multiple-step income statement. b. Statement of changes in stockholders' equity c. Balance sheet.

Explanation / Answer

a) Horizon Company

Income Statement   

For the year ended 31st March 2018

(Amount in $)   

Net Sales 8,313,000

Less:Cost of goods sold 4,870,000

----------------

Gross Profit 3,443,000

---------------

Operating Expenses

Administrative Expenses 1,795,000

Selling Expenses 1,225,000

--------------   

3,020,000 3,020,000

-----------------

Operating Income 423,000

Less:Non-operating Expenses

Interest Expense 150,000

R &D Expense 373,000 , 523,000

-------------

Net Loss $ 100,000

--------------

b)Statement of Changes in Stockholders' Equity For the year ended 31-3-2018

Common Stock at par value 700,000

Additional Paid-in Capital 378,000

Less:Treasury Stocks 100,000

------------- 978,000

Retained Earnings 199,000

Less: Loss for the Year 100,000

Less: Dividend Paid 40,000

------------- 140,000 59,000

------------- ----.--------.

1,037,000

--------------

  

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