Preparing Both an Income Statement and a Balance Sheet from a Trial Balance (AP5-3)Jordan...

Preparing Both an Income Statement and a Balance Sheet from a Trial Balance (AP5-3)

Jordan Sales Company (organized as a corporation on April 1, 2011) has completed the accounting cycle for the second year, ended March 31. 2013. Jordan also has completed a correct trial balance as follows:

Required:

Complete the financial statements as follows:

a.Classified (multiple-step) income statement for the reporting year ended March 31. 2013. Include income tax expense, assuming a 25 percent tax rate. Use the following subtotals: Gross Profit. Total Operating Expenses. Income from Operations. Income before Income Taxes, and Net Income, and show EPS.

b. Classified balance sheet at the end of the reporting year. March 31, 2013. Include (11 income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings. Use the following captions (list each item tinder these captions).