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Financial Statement Handout
Financial Statement Handout
Depreciation on equipment 2%
Tax rate is applied 20%
INSTRUCTION
1. MULTIPLE STEP INCOME STATEMENT showing EBIT and EAT
2. BALANCE SHEET in classified form.
Q No.2 Saleem provided following Trial Balance on December 31, 2012 and adjustment
data.
ADJUSTMENT DATA:
Required:
1. Multiple step Income Statement showing EBIT and EAT
2. Balance Sheet classified form
Q No.3
AUSTIN SOUND SEREO CENTER, INC.
TRIAL BALANCE
DECEMBER 31,2012
TITLE OF ACCOUNT DEBIT CREDIT
Cash 110,350
Account receivable 54600
Note receivable 8000
Interest receivable - -
Inventory-opening 40,500
Supplies 650
Prepaid insurance 1200
Furniture and Fixture 183,200
Accumulated depreciation-furniture 2400
Account payable 47,000
Note payable (long-term) 12,600
Capital-Frank 100,000
Sales revenue 338,000
Sales discount 1400
Sales return and allowance 2000
Interest revenue 600
Purchases 89,300
Purchases discount 3000
Purchases return and allowances 1200
Freight in 5200
Rent expense 8400
TOTAL 504,800 504,800
ADJUSTMENT DATA:
1. Depreciation for the year $ 600
2. Inventory on hand at the end of the year $ 42,000
3. Tax rate is 40% applied
INSTRUCTIOS:
Work sheet
Multiple step Income Statement showing EBIT and EAT
Classified Balance Sheet