Question

Part A -Using the trial balance provided below, prepare the following: 1. Multiple-Step Income Statement (4 points) 2. Retained Earnings Statement (1 points) 3. Classified Balance Sheet (10 points) Part A-Trial Balance S Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Trading Securities (cost $ 145,000) Equipment Accumulated Deperciation - Equipment Building Accumulated Deperciation - Building Land Franchises Patents Debt Investments (long-term) Equity Investments (long-term) Accounts Payable Salaries and Wages Payable Notes Payable (short-term) Dividends Payable Accrued Liabilities Notes Payable (long-term) Bonds Payable Common Stock, Par $ 5.00 APIC Treasury Stock Retained Earnings Dividends Declared Sales Revenue Sales Discounts Sales Returns and Allowances COGS Selling Expenses Administrative Expenses Loss due to storm damage Rent Revenue Gain on sale of equipment Income Tax Expense Useh Tele Solutions, Inc. Trial Balance December 31, 2019 Debit Credit 652,000 850, 210 $ 25,000 1,586,000 153,000 622,790 60,000 1,040,000 152,000 260,000 250,000 405,000 650,000 350,000 725,000 18,000 177.000 250,000 125,000 1,325,000 1,500,000 1,000,000 80,000 225,000 715,000 500,000 11,555,000 55,000 40,000 6,180,000 2,250,000 1,100,000 238,000 110,000 15,000 425,000 17,832,000 17,832,000

Answer 1

Income Statement
Continuing operations
Sales	11460000
Cost of Goods Sold	-6180000
Gross Profit	5280000
Selling Expenses	-2250000
Administrative Expenses	-1100000
Other income
Rent revenue	110000
Other gains-net
Gain on Sale of equipment	15000
Operating profit	2055000
Finance income	0
Finance costs	0
Finance costs-net	0
Loss due to natural disaster (storm)	-238000
Profit before income tax	1817000
Income tax expense	-425000
Deferred tax expense
Profit from continuing operations	1392000
Earning per share	6.96
Consolidated statement of comprehensive income
Profit for the period	1392000
Other comprehensive income
Unrealized Holding Gain on Trading Securities – Income	0
Other comprehensive income-net	0
Total comprehensive income for the period	1392000
Earning per share	6.96

Sales
Sales revenue	11555000
less:Sales discounts	-55000
Less:Sales returns and allowances	-40000
Net sales	11460000

Retained earnings
Beginning balance	715000
Income	1392000
Dividends	-500000
Ending balance	1607000

Consolidated Balancesheet
Non-current assets
Property, plant and equipment	1710790
Investment properties	0
Intangible assets	655000
Deferred assets
Other assets
Investment accounted for using the equity method
Financial assets at fair value through other comprehensive income
Financial assets at fair value through profit and loss	153000
Financial assets at amortised costs
Derivative financial instruments
Held-to maturity investments	1000000
Available for sale financial assets
other loans and recivables
Total non-current assets	3518790
Current assets
Inventories	1586000
Other current assets
Contract assets
Trade receivables	825210
Other financial assets at amortised costs
Other receivables
Derivative financial instruments
Financial assets at fair value through profit and loss
Cash and cash equivalents	652000
Total current assets	3063210
Total assets	6582000
Liabilities
Non-current liabilities
Borrowings	2825000
Deferred tax liability
Employee benefit obligation
Provisions
Total non-current liabilities	2825000
Current liabilities
Trade and other payables	1118000
Contract liabilities
Current tax liability
Borrowings	177000
Derivative financial instruments
Employee benefit obligation
Provisions
Total current liabilities	1295000
Total liabilities	4120000
Net assets	2462000
Equity
Share capital and share premium	855000
Other equity	0
Other reserve	0
Reatined earnings	1607000
Capital and other reserves attributable to owners'
Non-controliing interest
Total equity	2462000

	Cost	Accumulated depreciation	Total
Land	260000		2,60,000
Equipment	622790	60,000	5,62,790
Building	1040000	1,52,000	8,88,000
Total	1922790	212000	17,10,790
Intangible assets
Patents, (net of accumulated amortization)	405000
Franchises (net of accumulated amortization)	250000
	6,55,000
Financial assets at fair value through other comprehensive income
Trading Debt Securities (fair value, $153,000)	1,53,000

Held to maturity investments
Debt investments (long term)	650000
Equity investments (long term)	350000
	1000000

Trade and other payables
dividends payable	250000
Accounts Payable	725000
salaries and wages payable	18000
accrued liabilities	125000
	11,18,000
Borrowings
Notes payable (long term)	1325000
bonds payable	1500000
Discount on Bonds Payable
	28,25,000

Share capital	No of shares	Par Value	Par value	Premium	Total
Opening	200000	5	1000000	80000	1080000
Trasury stock					-225000
Total					855000