Solution-Prepare an income statement, statement of retained

Prepare an income statement, statement of retained earnings

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Reference no: EM131760729

Carlotta's Cakes Inc. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at May 31, 2017, its fiscal year end. All accounts have normal balances.

Accounts payable	$ 38,500	Income tax expense	$ 11,230
Accounts receivable	15,300	Insurance expense	7,500
Accumulated depreciation-equipment	126,000	Interest expense	4,500
Cash	20,600	Inventory	70,220
Cash dividends-common	50,000	Notes payable	75,000
Cash dividends-preferred	7,500	Preferred shares	150,000
Common shares	50,000	Rent expense	24,500
Cost of goods sold	277,475	Retained earnings	73,000
Depreciation expense	42,000	Salaries expense	67,800
Dividend payable	7,500	Sales	504,500
Equipment	420,000	Supplies expense	5,875

The note payable is due in 2019. There are 10,000 common shares issued and 5,000 preferred shares issued as at May 31, 2017.

Instructions

Prepare an income statement, statement of retained earnings, and balance sheet.

Reference no: EM131760729

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Prepare an income statement, statement of retained earnings

Reference no: EM131760729

Reference no: EM131760729

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