Question

Part 2: NOTE: This is a DIFFERENT COMPANY. Using the trial balance be the Mult-Step Income Statement and prepare the Statement of Retained Ear Gassified Balance Sheet on the pages which follow. To get full credit you must critical subtotals. 50 Part 2: Insert Second Trial Balance HERE. Patricks Company Adjusted Trial Balance December 31, 2017 DEBIT CREDIT Cash 3.900 Accounts Receivable 3,460 Allowance for Doubtful Account Short term Note Receivable 800 Interest Receivable 120 Supplies 130 Inventory 2.500 Prepaid Expenses 350 Equipment 14.720 Accumulated Depreciation 1,970 Copyrights 200 Accounts Payable 670 Interest Payable 20 Unearned Revenue Long Term Note Payable 1.400 Common Stock 5,600 Pald-In-Capital In Excess of Par-CS Retained Earnings (1/1/15) 2,160 Dividends 600 Sales 46,800 Sales Returns & Allowances 40 Sales Discounts Cost of Goods Sold 21.600 Bad debt expense 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 60.2901 60.29,00 800 60 30 BO YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT.

Answer 1

Income statement:

Quagmire Company
Income Statement
For the year ended December 31,2017
Sales	49,100
Less: Sales Returns & Allowance	-40
Sales Discounts	-60
Net sales		49,000
Cost of goods sold		-24,600
Gross profit		24,400
Operating expenses:
Bad debt expense	30
Depreciation expense	770
Amortization expense	70
Wages expense	8,000
Rent Expense	500
Office expense	80
Supplies expense	100
Selling expense	800
Total operating expenses		10,350
Operating income		14,050
Other operating income(expenses):
Interest revenue		150
Interest expense		-200
Income before income tax		14,000
Income tax		-760
Net income		13,240

Statement of retained earnings:

Quagmire Company
Statement of retained earnings
For the year ended December 31,2017
Retained earnings, Jan 1,2017	2,160
Net income	13,240
Subtotal	15,400
Less: Dividends	-600
Retained earnings, Dec 31,2017	14,800

Balance Sheet:

Quagmire Company
Balance Sheet
At Dec 31,2017
Assets
Current assets:
Cash		3,900
Accounts Receivable	3,460
Allowance for doubtful accounts	-670	2,790
Short term notes receivable		800
Interest receivable		120
Supplies		130
Inventory		2,500
Prepaid expenses		350
Total Current assets		10,590
Property,plant, and equipment:
Equipment	12,720
Accumulated depreciation	-2,970
Net Property,plant, and equipment		9,750
Intangible Assets:
Copyrights		1,000
Total assets		21,340
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		670
Interest payable		20
Unearned Revenue		50
Total current liabilities		740
Long Term Note Payable		1,400
Total liabilities		2,140
Stockholders' equity:
Common Stock	3,600
Paid-in-Capital In Excess of Par - CS	800
Retained earnings	14,800
Total stockholders' equity		19,200
Total liabilities and stockholders' equity		21,340