Reference no: EM132323999

Question

The following information is taken from Sandoval Corporation. on December 31, 2018. Assume all balances, except the given Retained Earnings amount, are ending balances.

Account Name                     Balance 

Accounts Payable                  $700

Accounts Receivable              750

Advertising Expense               660

Cash                                   3,700

Common Stock                      10,400

Cost of Goods Sold                 5,200

Dividends                              1,500

Equipment                            4,200

Income Tax Expense               1,520

Notes Payable (long-term)        900

Notes Payable (short term)       300

Prepaid Rent                          1,100

Retained Earnings (Jan 1, 2018) 2,600

Salaries and Wages Expense      7,200

Salaries and Wages Payable       800

Utilities Expense                       370

Sales Revenue                        18,500

Short-term Investments            6,300

Software                                 1,700

Required:

1. Set up a multi-step Income Statement for Sandoval Corporation. Be sure to title and date your Income Statement appropriately. You Income Statement should show the following:

a) Gross Profit

b) Income before Income Taxes

c) Net Income

2. Set up a Statement of Retained Earnings for Sandoval Corporation. Be sure to properly title and date you Statement of Retained Earnings.

3. Set up a classified Balance Sheet for Sandoval Corporation. Be sure to properly title and date your Balance Sheet. You must also clearly identify your current and non-current assets and liabilities.

4. Suppose Sandoval Corporation had an Accumulated Other Comprehensive Income account. What type of account is this (asset, liability, revenue etc...) and on which Financial Statement would we report it?