Answer to Question #230745 in Accounting for Shahidul Islam

Question

The ledger of ITC Company contained the following account balances at December 31, 2019, the end of company's fiscal year.

Accounts Balances($)

Cash 12080

Accounts Receivable22300

Inventory 36500

Supplies 1080

Prepaid Rent 9490

Machinery 23400

Accumulated Depreciation-Machinery 9970

Equipment 62200

Accumulated Depreciation-Equipment 7560

Land 70000

Accounts Payable 9730

15% Debenture 31000

Common Stock ($ 2.5 par value) 40000

Additional Paid in Capital-Common Stock 42100

Retained Earnings 59300

Sales 547800

Sales Returns and Allowances 8000

Sales Discount 3400

Salaries Expense 75900

Cost of Goods Sold 385800

Loss from employee strike 4560

Wages Expense 7700

Rent Expense 12450

Interest Expense 3400

Advertising Expense 10000

Rent Revenue 3400

Other Administrative Expense 2600

From the above information, prepare the followings:

(a) Multistep income statement for the year ending December 31, 2019;

(b) Stockholder_s Equity Statement as at December 31, 2019; and

(c) Classified Balance Sheet as at December 31, 2019.

Answer 1

Solution:

The calculations are as below: