Problem

Multistep income statement and classified balance sheetRequiredUse the following informati...

Multistep income statement and classified balance sheet

Required

Use the following information to prepare a multistep income statement and a classified balance sheet for Douglas Company for 2012. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Other operating expenses

$ 90,000

Cash

$ 23,000

Land

50,000

Interest receivable (short term)

800

Accumulated depreciation

38,000

Cash flow from investing activities

102,000

Accounts payable

60,000

Allowance for doubtful accounts

7,000

Unearned revenue

58,000

Interest payable (short term)

3,000

Warranties payable (short term)

2,000

Sales revenue

500,000

Equipment

77,000

Uncollectible accounts expense

14,000

Notes payable (long term)

129,000

Interest expense

32,000

Salvage value of equipment

7,000

Accounts receivable

113,000

Dividends

12,000

Salaries payable

12,000

Warranty expense

5,000

Supplies

3,000

Beginning retained earnings

28,800

Prepaid rent

14,000

Interest revenue

6,000

Common stock

52,000

Gain on sale of equipment

10,000

Cost of goods sold

179,000

Inventory

154,000

Salaries expense

122,000

Notes receivable (short term)

17,000

 

 

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