Question

The following information is available from the accounting records of Christine's Company for the year ende January 31, 2019 Cost of goods sold................................. .... ........ 4.500.000 Marketable securities ...... 600,000 Dividend declared and paid............. 25,000 Warranty payable......... 170,000 Bonds payable (matures 08/31/2028) 1,100,000 Merchandise inventory.... 608,000 Administrative expense...... 1,253,590 Dividend revenue .......... 60,000 Accounts receivables... 505,000 Accumulated depreciation-building... 550.000 Retained camnings.... 425,000 Payroll tax payable ..... 15.000 Income taxes ....... 46,410 Prepaid insurance... 17.000 Net Sales 7,445,000 Treasury stocks 91,000 Research and development expense........ 100,000 Interest payable .. 25,000 Common Stock. So.10 par value. 200,000 Loan payable ($70,000 due within the next year) 700,000 Interest expense.. 51,000 Cash 390,000 Land. 800,000 Allowance for bad debts. 70,000 Buildings... 1,600,000 Accounts payable... 440,000 Selling Expense. 1,393,000 Additional paid-in capital...... 780,000 Required: Use Microsoft Excel to prepare the following financial statements for Christine's Company: a. Multiple-step income statement for the year ended January 31, 2019 b. Statement of changes in stockholders' equity for the year ended January 31, 2019 c. Balance sheet as of January 31, 2019. INSTRUCTIONS: 4. This assignment must be completed in Excel. Handwritten work or late assignments will ne Attach your financial statements to this sheet in the order listed below Multiple-step Income Statement Statement of Changes in Stockholders' Equity Balance Sheet - Grading of this project will be based on: 1. Accuracy of your financial statements. 2. Use of formulas, neatness and formatting of your Excel financial statements OTE: new after aanh number or color your work.

Answer 1

a. Multiple step income statement: (appropriate reference column inserted only for understanding the calculations)

Multi-step Income Statement of Christine's company For the year ended January 31, 2019 Description Amount ($) Ref Net Sales 7,445,000 A Less: COGS 4,500,000 B Gross Profit 2,945,000 C=A-B Less: Operating Expense Research & Development Expense 100.000 Selling Expense 1,393,000 Administrative Expense 1,253,590 Total Operating Expense 2,746,590 D Operating Profit 198,410 E=C-D Non Operating Income Dividend Revenue 60.000 Total Non-Operating Income 60,000 F Less: Non-Operating Expense Interest Expense 51,000 Income Taxes 46,410 Total Non-Operating Expenses 97,410 G Net Income 161,000 H=E+F-G

b. Statement of changes in Stockholder's Equity: (appropriate reference column inserted only for understanding the calculations)

Amount ($) Reference Statement of Changes in Stockholder's Equity Description Equity Account: Common stock @ $0.1 par value Additional Paid-in capital 200,000 A 780,000 B 980,000 C=A+B (91,000) D 889,000 E=C-D Treasury Stock Total Equity Retained Earnings: Balance as on Jan 31, 2019 Current Year Profit (from Income Statement) 425,000 F 161,000 G 586,000 H=F+G (25,000) 561,000 J=H-1 1,450,000 E+ Dividend declared and paid Total Retained Earnings Total Stockholder's Equity

c. Balance Sheet as of Jan 31, 2019:

Balance sheet of Christine's Company As of January 31, 2019 Amount ($) Assets Current Assets Cash Accounts Receivable Allowance for bad debts Amount ($) Liabilities & Equity Current Liabilities 390,000 Accounts Payable 505,000 Warranty Payable (70,000) Payroll Tax Payable Loan Payable (due less than 12 months 608,000 from balance sheet date) 600,000 Interest Payable 17,000 Income Tax Payable 440,000 170,000 15,000 Merchandise Inventory Marketable Securities Prepaid Insurance 70,000 25,000 Long-Term Investments 1,100,000 Long Term Liabilities Bonds payable (Due 8/31/2028) Loan Payable (due more than 12 months from Balance sheet date) 630,000 Fixed Assets Building Accumulated Depreciation - Building Land 1,600,000 Stockholder's Equity: (550,000) Equity 800,000 Retained Earnings 889,000 561,000 Intangible & Other Assets Total Assets 3,900,000 Total Liabilities & Equity 3,900,000