Question

5-11. Financial Statements. From an adjusted trial balance, you are given the following accounts in alphabetical order. On the columnar papers following, create a multi-step Income Statement, a Statement of Retained Earnings, and a classified Balance Sheet in good form. Your Tum, Inc. Account Listing For the year ended June 30, 2027 8,562 18,128 6,000 12,300 500 50,000 74.729 83,950 I Accounts Payable Accounts Receivable Accumulated Depreciation: Truck Additional Paid-In Capital Amortization Expense Bonds Payable Cash Common Stock Cost of Goods Sold Depreciation Expense: Truck Dividends Income Tax Expense Interest Expense Investment in Classy Stock Merchandise Inventory Patents Prepaid Insurance Rental Revenue Retained Earnings Sales Taxes Payable Truck Unearned Revenue Utilities Expense Wages Expense Wages Pavable 58,230 1,200 15.000 18,354 890 74.123 38,765 15.300 18,500 1.500 45.166 139.867 18.354 15,000 2.300 12,334 7,539 593 368,592 368,592 146

Answer 1

Your Turn,Inc.

Multistep income statement

For the year ended June 30,2027

Sales		139,867
Cost of goods sold		58,230
Gross profit		81,637
Operating expenses
Utilities exepnses	12,334
Wages Expenses	7,539
Depreciation expense:Truck	1,200
Amortization expense	500
Total operating expenses		21,573
Income from operations		60,064
Other revenue and (Expenses)
Rental revenue	1,500
Interest expense	(890)
Total other revenue and ( Expenses)		610
Income before income tax		60,674
Income tax expense		18,354
Income after tax( Net Income)		42,320

Your Turn, Inc.

Statement of Retained earnings

For the year ended June 30,2027

Balance at the beginning	45,166
Add: Net income	42,320
Subtotal	87,486
Dividend	(15,000)
Balance at the year ended	72,486

Balance sheet

For the year ended June 30,2027

Assets				Liabilities
Current assets				Current liability
Cash		74,729		Accounts payable	8,562
Account Recievable		18,128		Taxes payable	18,354
Merchandise inventory		38,765		Unearned revenue	2,300
Prepaid Insurance		18,500		Wages payable	593
Total current assets			150,122	total current liabilities		29,809
Investment				Long term liabilities
Investment in classy stock			74,123	bonds payable		50,000
Tangible assets:				Stockholders equity
Truck		15,000		Common stock	83,950
Accumulated depreciation: Truck		(6,000)	9,000	additional paid in capital	12,300
Intangible assets				Retained earnings	72,486
Patent			15,300	Total stockholders equity		168,736
Total assets			248,545	Total liabilities and stockholders equity		248,545