Question

Preparation of Financial Statements Use the following information to prepare a multi-step Statement of Comprehensive Income, a Statement of Changes in Shareholders Equity, and a classified Statement of Financial Position. Charles Corporation Adjusted Trial Balance December 31, 2017 Debit Credit $ 33,400 87,400 Cash 90,000 7,000 170,000 Merchandise Inventory.. Store Supplies Store Equipment. Accumulated Depreciation-Store Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment Notes Payable Accounts Payable Common Shares.... Retained Earnings. Sales Sales Return and Allowances Cost of Goods Sold. 54,000 96,000 26,000 82,000 117,000 200,000 16,000 1,494,400 8,400 Advertising Expense. Utilities Expense. Repair Expense Delivery Expense Rent Expense. 280,000 52,800 28,000 24,200 48,000 4,000 18,000 4,000 22,000 Store Supplies Expense Depreciation Expense Store Equipment. Depreciation Expense Delivery Equipment Interest Expense Interest Payb. Totals. 2.011400 2.011400 Other Data: 1. Salaries expense is 70% selling and 30% administrative. 2. Rent expense and utilities expense are 80% selling and 20% administrative. 3. $60,000 of notes payable are due for payment within 12 months. 4. Repair expense is 100% administrative.

Answer 1

Answer :

1. Preparation of multi step statement of comprehensive income :

Charles Corporation
Statement of Income For the year ended December 31, 2017
Particulars	Amount ($)	Amount ($)	Amount ($)
Sales		$1,494,400
Less: Sales Returns and Allowances		(8,400)
Net Sales			$1,486,000
Less: Cost of goods sold			(994,800)
Gross Profit			$ 491,200
Less: Operating Expenses -
1. Selling Expenses :
Salaries Expense (70%)	196,000
Advertising Expense	52,800
Utilities Expense (80%)	22,400
Delivery Expense	33,400
Rent Expense (80%)	38,400
Depreciation Expense - Delivery Equipment	14,000	357,000
2. Administrative Expenses :
Salaries Expense (30%)	84,000
Utilities Expense (20%)	5,600
Repair Expense	24,200
Rent Expense (20%)	9,600
Store Supplies Expense	4,000
Depreciation Expense - Store Equipment	18,000	145,400
3. Other Expenses Interest Expense		22,000
Total Expenses			$(524,400)
Net Loss from business			$ (33,200)

2.Preparation of Statement of changes in shareholders equity

Statement of changes in Shareholders Equity
Particulars	Common Shares	Retained Earnings	Total Shareholders Equity
Opening Balance	$200,000	$16,000	$216,000
Less:
Loss from Income Statement		(33,200)	(33,200)
Closing Balance	$200,000	$ (17,200)	$182,800

3. Preparation of statement of financial position