Tempe Corporation's capital structure consists of 75,000 shares of common stock. The December 31, 2016 account balances are listed below. All adjusting entries have been madeexcept for the accrual of taxes (20% tax rate).

Tempe Corporation’s capital structure consists of 75,000 shares of common stock. The December 31, 2016 account balances are listed below. All adjusting entries have been madeexcept for the accrual of taxes (20% tax rate).
Sales
$1,303,600
Purchase discounts
18,000
Purchases
642,000
Loss on Discontinued Operations
60,000
Selling expenses
128,000
Cash
60,000
Accounts receivable
90,000
Common stock
200,000
Accumulated depreciation
198,000
Dividend revenue
8,000
Inventory, January 1, 2016
152,000
Unearned service revenue
4,400
Accrued interest payable
1,000
Land
370,000
Patents
100,000
Retained earnings, January 1, 2016
290,000
Interest expense
17,000
General and administrative expenses
150,000
Dividends declared
29,000
Allowance for doubtful accounts
5,000
Notes payable (maturity 7/1/20)
200,000
Machinery and equipment
450,000
Office Supplies
40,000
Accounts payable
60,000
Ending Inv at Dec 31, 2016 was $125,000.
Required
a) Prepare a 2016 multi-step income statement; include EPS. Refer to the Cabrera (Illustration 4-2) and Poquito (Illustration 4-8) Company examples in Chapter 4 of the text for format suggestions (Also, refer to Illustration 4-10). Many items in these format examples are not applicable to this homework problem.
b) Prepare a 2016 retained earnings statement. Refer to the Sticker example (illustration 4-19) in Chapter 4 of the text for format suggestions. No corrections of prior periods exist.
c) Prepare a 12/31/16 balance sheet. Refer to the Scientific Products (Illustration 5-16) example in Chapter 5 of the text for format suggestions. Many items in this example are not applicable to this homework problem.
Submission Instructions

  1. Discussions with fellow students encouraged.

  2. Word-processed answer must be created by each student individually.

  3. In the upper right corner of page one, indicate:

· Name
· Course
· Assignment #
· Page # of #

  1. On additional pages, indicate name and page # of # in the upper right corner.

  2. Do not use a separate cover sheet, folder, or binder.

  3. Use a standard paper clip; do not use a staple.

  4. Organization and presentation will be a factor in your grade determination.