Reference no: EM132933324
Financial Statement
Bean Company has the following ledger accounts and adjusted balances as of December 31, 2020. All accounts have normal balances. Bean's income tax rate is 20%. Bean has 500,000 shares of Common Stock authorized, 200,000 shares of Common Stock issued, and 190,000 shares of Common Stock outstanding.
Accounts Payable.................................. 70,200
Accounts Receivable.............................. 486,000
Accumulated Depreciation-Building............ 135,000
Accumulated Depreciation-Equipment.......... 108,000
Administrative Expenses......................... 108,000
Allowance for Doubtful Accounts............... 54,000
Bonds Payable...................................... 480,000
Building............................................1,350,000
Cash................................................. 70,200
Common Stock.................................... 720,000
Cost of Goods Sold...............................1,026,000
Discount on Bonds Payable..................... 12,000
Dividends.......................................... 36,000
Equipment.......................................... 522,000
Income from Operations of Division X........ 108,000
(Division X is a component of Carr Company)
Interest Revenue................................... 72,000
Inventory.............................................756,000
Land (held for future use)......................... 540,000
Land (used for building).......................... 297,000
Loss from Sale of Division X...........................216,000
(Division X is a component of Carr Company)
Loss on Sale of Investments..................... .. 27,000
Mortgage Payable ................................. 675,000*
Paid-In Capital in Excess of Par..................475,200
Prepaid Rent........................................ 27,000**
Retained Earnings, January 1, 2020............ 675,000
Sales Discounts..................................... 54,000
Sales Returns and Allowances.................... 90,000
Sales Revenue....................................2,763,000
Selling Expenses.................................. 351,000
Trademark.......................................... 81,000
Treasury Stock..................................... 72,000
- $48,000 of the principal comes due in 2020.
- Three years rent on offsite document storage paid in advance.
Instructions
Problem 1: Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.