Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

NEWCO’s adjusted account balances

NEWCO’s adjusted account balances as of December 31, 2015 are shown below (some noted balances are Jan. 1, 2015):

    Sales . . . . . . . . . . . . . . . . . . . . . . . .1,200,000
     Purchases . . . . . . . . . . . . . . . . . .  . .  810,000
     Marketable securities . . . . . . . .. . . . .   15,000
     Purchase discounts  . . . . .. . . . . . . . .   20,000
     Purchase returns and allowances. . . .    2,000
     Selling expenses  . . . . . . . . . . . . . . .  114,000
     Cash  . . . . . . . . . . . . . . . . . . . . . . . . .   147,000
     Accounts receivable . . .  . . . . . . . . . .   60,000
     Common stock  . . .  . . . . . . . . . . . . .  150,000
     Accumulated depreciation   . . . . . . . .   42,000
     Paid-in-capital in excess of par    . . . .   30,000
     Inventory, January 1, 2015  . . . . . . . .  149,000
     Inventory, December 31, 2015. . . . . .  120,000
     Accounts payable   . . . . . . . . . . . . . . .   71,000
     Salaries payable  . . . . . . . . . . . . . . . . .    5,000
     Patents . . . . . . . . . . . . . . . . . . . . . . . . .  18,000
     Retained earnings, January 1, 2015. . .   60,600
     Interest expense  . . . . . . . . . . . . . . . . . . 13,000
     General and administrative expenses. . 160,000
     Dividend revenue. . . . . . . . . . . . . . . . . .    6,000
     Allowance for doubtful accounts . . . . .     3,000
     Notes payable (maturity 7/1/2016) . . . . 105,000
     Machinery and equipment . . . . . . . . . .  150,000
     Income tax expense  . . . . . . . . . . . . . .    30,600
     Treasury stock  . . . . . . . . . . . . . . . . . . .   10,000
     Dividends declared and paid . . . . . . . . .  18,000

Based on the account balances provided, prepare a multi-step income statement and a classified balance sheet. Note: A “multi-step” income statement is one that shows Net Sales, Cost of Goods Sold, Gross Profit, Total Operating Expenses, Net gain/loss from other activities (if applicable), Income before taxes, Income tax expense, and Net Income.