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Multi-step income statement and a balance sheet

Use the following information to prepare a multistep income statement and a balance sheet for Daniels Company 2006. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Operating Expenses $90,000
Accounts Payable $60,000
Land $77,000
Dividends $12,000
Beginning Retained Earnings $171,070
Interest Revenue $16,000
Inventory $125,000
Notes Receivable (short term) $17,000
Cash $73,000
Interest Receivable(short term) $800
Cash Flow from Investigating Activities $102,000
Allowance for Doubtful Accounts $7,000
Sales Revenue $400,000
Uncollectible Accounts Expense $14,000
Accounts Receivable $113,000
Salaries Payable $12,000
Supplies $3,000
Prepaid Rent $14,000
Common Stock $52,000
Cost of Golds Sold $179,000
Salaries Expense $58,270
Unearned Revenue $58,000

Solution Summary

The solution explains how to prepare a multi-step income statement and a balance sheet.