Problem: Presented below is financial information related to Vi-Gro Corporation for the year 2002. Unless otherwise stated, all balances are ending balances.
| Accounts payable |
|
|
$ 874,200 |
| Accounts receivable |
|
|
1,000,800 |
| Accumulated depreciation-Equipment |
1,560,000 |
| Administrative expenses |
|
420,000 |
| Bonds payable |
|
|
3,400,000 |
| Cash |
|
|
|
125,000 |
| Common stock |
|
|
2,200,000 |
| Cost of goods sold |
|
|
2,285,000 |
| Dividends |
|
|
|
290,000 |
| Equipment |
|
|
5,894,000 |
| Gain on the sale of land |
|
87,000 |
| Interest expense |
|
|
108,000 |
| Interest revenue |
|
|
94,000 |
| Inventories |
|
|
984,000 |
| Marketable securities (short-term) |
1,175,000 |
| Net sales |
|
|
|
3,670,000 |
| Notes payable (short-term) |
|
1,136,500 |
| Other long-term debt |
|
|
401,300 |
| Patents and other intangibles |
|
1,250,100 |
| Prepaid expenses |
|
|
356,100 |
| Retained earnings (January 1, 2002) |
833,000 |
| Selling expenses |
|
|
368,000 |
Vi-Gro Corporation had 88,000 shares of common stock outstanding for the entire year. Its effective income tax rate for state and federal income taxes combined is 35 percent.
Instructions:
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.
(c) Prepare a retained earnings statement.
(d) Prepare a classified balance sheet.