Reference no: EM132790190
Question - The following account balances are available for The Clothing Outlet, Inc., a discount retailer, as of and for the year ended December 31, 2016, except for the retained earnings balance which is stated below as of January 1, 2016:
Cash $2,638,000
Accounts receivable 5,000,000
Marketable securities 20,000,000
Prepaid insurance 2,400,000
Inventory 6,000,000
Equipment 50,000,000
Accumulated depreciation: equipment 8,000,000
Buildings 52,700,000
Accumulated depreciation: buildings 15,000,000
Land 6,000,000
Investments (long-term) $4,000,000
Accounts payable $10,000,000
Income taxes payable $6,000,000
Salaries payable $4,000,000
Dividends payable $3,000,000
Interest payable $500,000
Unearned Revenue $700,000
Notes payable (long-term) $4,100,000
Bonds payable (long term) $8,000,000
Common stock $21,000,000
Retained Earnings (as of Jan. 1, 2016) $8,400,000
Dividends declared $5,000,000
Sales $220,000,000
Cost of goods sold $52,800,000
Interest revenue $1,500,000
Interest expense $5,200,000
Income tax expense (tax rate 38%)
Selling expenses:
Sales salaries and commissions $18,000,000
Insurance expense $5,600,000
Advertising expense $8,500,000
Utilities expense $7,000,000
Depreciation expense: equipment $600,000
Delivery expense $700,000
General and administrative expenses:
Executive and administrative salaries $12,700,000
Utilities expense $4,200,000
Rental expense $800,000
Depreciation expense: buildings $500,000
Required - Based on the facts provided, prepare the following financial statements for The Clothing Outlet, Inc.:
a) A multiple-step Income Statement for the year-ended December 31, 2016.
b) A Statement of Retained Earnings for the year-ended December 31, 2016.
c) A Statement of Financial Position as of December 31, 2016.
d) Prepare the closing entries as of December 31, 2016.