Question

Part 2: NOTE: This is a DIFFERENT COMPANY. Using the trial balance below, complete the Multi-Step Income Statement and prepare the Statement of Retained Earnings and Classified Balance sheet on the pages which follow. To get full credit you must include all critical subtotals. CREDIT 670 970 670 2 0 Part 2: Insert Second Trial Balance HERE. Quagmire Company Adjusted Trial Balance December 31, 2017 DEBIT Cash 3,900 Accounts Receivable 3,460 Allowance for Doubtful Accounts Short term Note Receivable 800 Interest Receivable 120 Supplies 130 Inventory 2.500 Prepaid Expenses 350 Equipment 12.720 Accumulated Depreciation Copyrights Accounts Payable Interest Payable T Unearned Revenue Long Term Note Payable T L Common Stock Paid-in-Capital In Excess of Par-CS Retained Earnings (1/1/15) Dividends Sales Sales Returns & Allowances 40 Sales Discounts 60 Cost of Goods Sold 24.600 Bad debt expense 30 Depreciation Expense 770 Amortization Expense 70 Wages Expense 8.000 Rent Expense Office Expense 80 Supplies Expense 100 Selling Expense 800 Interest Expense 200 Interest Revenue Income Tax Expense 760 Totals 61.590 1.400 3.600 800 2.160 49.100 150 61.590 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION. SUBMIT AS ONE PDF DOCUMENT.

Answer 1

Income statement:

Quagmire Company
Income Statement
For the year ended December 31,2017
Sales	49,100
Less: Sales Returns & Allowance	-40
Sales Discounts	-60
Net sales		49,000
Cost of goods sold		-24,600
Gross profit		24,400
Operating expenses:
Bad debt expense	30
Depreciaton expense	770
Amortization expense	70
Wages expense	8,000
Rent Expense	500
Office expense	80
Supplies expense	100
Selling expense	800
Total operating expenses		10,350
Operating income		14,050
Other operating income(expenses):
Interest revenue		150
Interest expense		-200
Income before income tax		14,000
Income tax		-760
Net income		13,240

Statement of retained earnings:

Quagmire Company
Statement of retained earnings
For the year ended December 31,2017
Retained earnings, Jan 1,2017	2,160
Net income	13,240
Subtotal	15,400
Less: Dividends	-600
Retained earnings, Dec 31,2017	14,800

Balance Sheet:

Quagmire Company
Balance Sheet
At Dec 31,2017
Assets			Liabilities and stockholders' equity
Current assets:			Current liabilities:
Cash		3,900	Accounts payable		670
Accounts Receivable	3,460		Interest payable		20
Allowance for doubtful accounts	-670	2,790	Unearned Revenue		50
Short term notes receivable		800	Total current liabilities		740
Interest receivable		120	Long Term Note Payable		1,400
Supplies		130	Total liabilities		2,140
Inventory		2,500
Prepaid expenses		350	Stockholders' equity:
Total Current assets		10,590	Common Stock	3,600
Property,plant, and equipment:			Paid-in-Capital In Excess of Par - CS	800
Equipment	12,720		Retained earnings	14,800
Accumulated depreciation	-2,970		Total stockholders' equity		19,200
Net Property,plant, and equipment		9,750
Copyrights		1,000
Total assets		21,340	Total liabilities and stockholders' equity		21,340