Using the balances from the trial balance below, prepare;
a) The multi-step income statement
b)The statement of retained earnings
c) The balance sheet
Account name Dr Cr
Land 45,000
Building 6000
Machinery 4000
Mortgage 37,000
Dividends 6000
Common stock 15,000
Inventories 6,100
Cash 4000
CoGS 56,400
Interest revenue 3,200
Trade payable 3,705
Tax expense 7,730
Sales 80,875
Trade receivable 2,300
Admin expense 900
Selling expense 400
Interest expense 950
Total 139,780 139,780
The opening balance for the Statement of Retained Earnings is zero (0).
Saffron Trading
Company
INCOME STATEMENT
For the year ended 30thNovember 2010
Sales Revenue
Operating expenses
Other revenues and gains
Other expenses and losses
Income before tax
Net income for the year
Saffron Trading Company
RETAINED EARNINGS STATEMENT
For the year ended 30thNovember 2010
Saffron Trading Company
BALANCE SHEET As of 30th
November 2010
ASSETS
Current assets
Fixed assets
EQUITY & LIABILITIES
Current liabilities
Long term liabilities
Equity
