Question

Part 2: NOTE: This is a DIFFERENT COMPANY Using the trial balance below, complete the Mult-Step Income Statement and prenare the Statement of Retained Earnings and Classified Balance Sheet on the pages which follow. To get full credit you must include an critical subtotals. CREDIT 670 2.970 Part 2: Insert Second Trial Balance HERE. Quagmire Company Adjusted Trial Balance December 31, 2017 DEBIT Cash I 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 Accumulated Depreciation 12.720 Copyrights Accounts Payable 1000 Interest Payable Unearned Revenue Long Term Note Payable Common Stock Pald-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 500 Office Expense Supplies Expense 100 Selling Expense 800 Interest Expense 200 Interest Revenue Income Tax Expense 760 Totals 61.590 670 20 50 1,400 3,600 800 2.160 49,100 80 150 61.590 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT.

Answer 1

Income Statement for the year 2017
Revenue
Sales (net of discounts)	49,000
Interest received	150
Total (A)	49,150
Expenses
Cost of Goods Sold	24,600
Wages and Salary Expenses	8,000
Rent	500
Office expenses	80
Bad debt written off	30
Supplies Expenses	100
Selling Expenses	800
Interest Expenses	200
Depreciation & Ammortization	840
Income Tax Expense	760
Total (B)	35,910
Net Income	13,240
Statement of Retained Earnings
Particulars	Amount
Opening Retained Earning	2,160
Add: Income during year	13,240
Less: Dividend paid	-600
Closing balance of Retained Earning	14,800
Balance Sheet for the year ended 2017
Assets
Non Current Asset
Equpiment (net of Depreciation)	9,750
Copyright	1,000
Current Asset
Accounts receivable (net)	2,790
Inventory	2,500
Prepaid Expenses	350
Cash	3,900
Short term note receivable	800
Interest Receivable	120
Supplies	130
Total	21,340
Equity & Liabilities
Equity
Common Stock	3,600
Other paid in capital	800
Retained Earnings	14,800
Non Current liabilities
Long term note payable	1,400
Current liabilities
Accounts payable	670
Unearned Revenue	50
Interest payable	20
Total	21,340