Question 1:
The following information was obtained from the accounts of Lukes, Inc., as of December 31, 2012. It is presented in scrambled order.
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Common stock, no par value, 10,000 shares authorized, 5,724 shares issued
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$ 3,180
|
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Retained earnings
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129,950
|
|
Deferred income tax liability (long term)
|
24,000
|
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Longterm debt
|
99,870
|
|
Accounts payable
|
35,000
|
|
Buildings
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75,000
|
|
Machinery and equipment
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300,000
|
|
Land
|
11,000
|
|
Accumulated depreciation
|
200,000
|
|
Cash
|
3,000
|
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Receivables, less allowance of $3,000
|
58,000
|
|
Accrued income taxes
|
3,000
|
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Inventory
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54,000
|
|
Other accrued expenses
|
8,000
|
|
Current portion of longterm debt
|
7,000
|
|
Prepaid expenses
|
2,000
|
|
Other assets (long term)
|
7,000
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Required :
Prepare a classified balance sheet in report form. For assets, use the classifications of current assets, plant and equipment, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.
Question 2 :
The accounts of Consolidated Can contain the following amounts at December 31, 2012:
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Cost of products sold
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$410,000
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Dividends
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3,000
|
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Extraordinary gain (net of tax)
|
1,000
|
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Income taxes
|
9,300
|
|
Interest expense
|
8,700
|
|
Other income
|
1,600
|
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Retained earnings, 1/1
|
270,000
|
|
Sales
|
480,000
|
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Selling and administrative expense
|
42,000
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Required:
Prepare a multiple-step income statement combined with a reconciliation of retained earnings for the year ended December 31, 2012.