Question: Use the following account balances of Mango Inc. to prepare a:
1) Multi-step Income Statement, and
2) Statement of Retained Earnings.
| Accounts payable |
$60,000 |
| Accounts receivable |
90,000 |
| Accumulated depreciation-machinery |
180,000 |
| Administrative expenses |
170,000 |
| Allowance for doubtful accounts |
5,000 |
| Cash |
60,000 |
| Common stock |
200,000 |
| Cost of goods sold |
700,000 |
| Discontinued operations loss (net of tax) |
63,000 |
| Dividend revenue |
8,000 |
| Dividends declared |
24,000 |
| Interest expense |
17,000 |
| Interest payable |
1,000 |
| Land |
370,000 |
| Machinery |
450,000 |
| Materials |
40,000 |
| Notes payable (maturity 7/1/20) |
200,000 |
| Patents |
100,000 |
| Retained earnings, January 1, 2016 |
270,000 |
| Sales revenue |
1,250,000 |
| Selling expenses |
128,000 |
| Unearned service revenue |
4,400 |
Additional information: 1) Mango, Inc. has 50,000 shares of Common Stock issued and outstanding.
2) Income Tax for continuing operations equals $72,900.
3) The tax effect of the loss on Discontinued Operations was $27,000.