Multiple-Step Income Statement for Music Warehouse
Not what you're looking for?
Prepare a multiple-step income statement for Music Warehouse.
Prepare a statement of changes in stockholder's equity for Music Warehouse.
Music Warehouse
Adjusted Trial Balance
December 31, 2008
Debit Credit
Cash $24,675
Accounts Receivable 5,625
Inventory 65,980
Land 93,000
Building 289,000
Accumulated Depreciation 75,000
Notes Payable 85,000
Accounts Payable 53,600
Interest Payable 4,750
Common Stock 10,000
Additional Paid-in Capital 120,000
Dividends 10,000
Retained Earnings 59,980
Sales 937,500
Sales Discounts 22,675
Cost of Goods Sold 723,000
Salaries 81,000
Utilities 8,900
Repairs & Maintenance 5,225
Telephone 2,850
Interest Expense 4,400
Depreciation Expense 9,500
$1,345,830 $1,345,830
The following is additional information needed for financial-statement preparation:
Loss as a result of hurricane damage on the building: $17,000 (assume that the building is not located in an area that sustains frequent hurricane damage.)
Loss because of the discontinuation of the cassette tape music segment: $26,875
Beginning of the year balance of common stock: $8,000 (assume that changes are related to issuance of common stock.)
Beginning of the year balance of additional paid-in capital: $102,000
Effective income tax rate: 35%
(*Please see the attachment for the formatted chart.)
Purchase this Solution
Solution Summary
Your tutorial is in excel, attached, showing a multi-step income statement and a change in equity statement. Click in cells to see computations, especially for extraordinary items which must be reported net of tax.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.