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).
Loss on Discontinued Operations
Inventory, January 1, 2016
Unearned service revenue
Accrued interest payable
Retained earnings, January 1, 2016
General and administrative expenses
Allowance for doubtful accounts
Notes payable (maturity 7/1/20)
Machinery and equipment
Ending Inv at Dec 31, 2016 was $125,000.
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.
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