Financial Statement Preparation Assignment Required: Prepare a statement of financial position, multi-step income statement and statement of retained earnings in proper financial statement format for Marmidan Corporation Inc. for the year ended December 31, 2015 from the company’s pre-closing trial balance below. Marmidan Corporation Inc. is a private corporation that was incorporated on January 1, 2015. Debit Credit Prepaid expenses $ 25,693 Land (cost) 120,000 Building (cost) 149,398 Accrued liabilities 37,100 Sales 754,750 Selling expense 176,035 Interest income on investments 8,000 Gain on sale of investments 45,095 Building, accumulated depreciation 3,845 Income tax payable 14,370 Accounts receivable, trade 158,395 Goodwill (cost) 25,930 Cash 10,810 Bank operating line of credit 10,000 Equipment (cost) 243,450 General and administrative expenses 145,760 Inventory 89,194 Accounts payable 37,899 Dividends payable 2,000 Financial expenses 15,000 Loan payable to shareholder due on demand 3,743 Income tax expense 8,370 H.s.t. payable 9,157 Bond payable, 4%, repayable $12,000 per year until maturity 120,000 Customer deposits payable 10,900 Equipment, accumulated depreciation 47,195 Common shares 450,000 Cost of goods sold 375,250 1554054 Dividends declared 10,769 1554054 Marmidan Corporation Inc. Income statement For the year ended December 31, 2015$Sales 754,750 Less: cost of goods sold (375,250) Operating income 379,500 Interest income on investments 8,000 Gain
Financial Statement Preparation Assignment
Required:
Prepare a
Debit Credit
Prepaid expenses $ 25,693
Land (cost) 120,000
Building (cost) 149,398
Accrued liabilities 37,100
Sales 754,750
Selling expense 176,035
Interest income on investments 8,000
Gain on sale of investments 45,095
Building,
Income tax payable 14,370
Accounts receivable, trade 158,395
Cash 10,810
Bank operating line of credit 10,000
Equipment (cost) 243,450
General and administrative expenses 145,760
Inventory 89,194
Accounts payable 37,899
Dividends payable 2,000
Financial expenses 15,000
Loan payable to shareholder due on demand 3,743
Income tax expense 8,370
H.s.t. payable 9,157
Bond payable, 4%, repayable $12,000 per year until maturity 120,000
Customer deposits payable 10,900
Equipment, accumulated depreciation 47,195
Common shares 450,000
Cost of goods sold 375,250 1554054
Dividends declared 10,769
1554054
Marmidan Corporation Inc. Income statement
For the year ended December 31, 2015$Sales 754,750 Less: cost of goods sold (375,250) Operating income 379,500 Interest income on investments 8,000 Gain
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