Question

Question 2 (10 marks) From the following details provided by Mark Ltd, prepare (0) a detailed multi-step Income Statement for the year ended 30 June 2018 () a classified Balance sheet as at 30 June 2018 (4 marks) (6 marks) 262,000 Sales revenue Accounts receivable 238,000 A Cost of Sales Lnventory Salary expense Prepaid rent -Rent expense 512,000 68, 000 Goodwil 90,000 Annual depreciation on Building Building Advertisins expense Accumulated depredlation on Building NCl 24,000 600,000 16,000 334,000 10,000 318,000 Tax expense +Long Term Loan + |Unearned sales revenue Mark's capital 20,000 1 2,000 190,000 Retained Earnings 364,000
can someone please help me with this

Answer 1

Answer to Q#2 (First question in the list Mark Ltd 1) Multi-Step Income Statement For the Year Ended June 30, 2018 $1,050,000 $512,000 $538,000 Sales Revenue Cost of Sales Gross Profit Operating Expenses Selling Expenses: Advertising Expense Administrative Expenses: Salary Expense Depreciation expense $16,000 $6,000 $24,000 $68,000 Rent Expense Total Admin. exps. Total Operating Expenses Net Operating Income Other Revenues and Expenses: $98,000 $114,000 $424,000 $10,000 $414,000 $50,000 Interest Expense Income before income taxes Tax Expense Net Income 364,000

Mark Ltd 2) Classified Balance Sheet At June 30, 2018 Assets Current Assets: $262,000 Cash $238,000 Accounts receivable $2,000 $36,000 Inventory Prepaid Rent Total Current Assets $538,000 Plant, Property & Equipment: Building $600,000 $334,000 Less: Accumulated depreciation-Building $266,000 Net property, plant, and equipment Intangible Assets $90,000 Goodwill $894,000 Total Assets

Liabilities & Owner's Equity Current Liabilities: $318,000 Accounts payable Unearned Service Revenue $2,000 $320,000 Total Current liabilities Long-term liabilities $20,000 $340,000 Total liabilities Owner's Equity: $190,000 Mark's Capital $364,000 Retained Earnings Total owner's Equity $554,000 $894,000 Total Liabilities & Owner's equity