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Presented below is information related to Concord Corp. for the year 2017.
| Net sales | $1,305,900 | Write-off of inventory due to obsolescence | $83,290 | |||
| Cost of goods sold | 781,300 | Depreciation expense omitted by accident in 2016 | 48,700 | |||
| Selling expenses | 74,100 | Casualty loss | 48,000 | |||
| Administrative expenses | 57,500 | Cash dividends declared | 49,420 | |||
| Dividend revenue | 21,500 | Retained earnings at December 31, 2016 | 972,830 | |||
| Interest revenue | 7,610 | Effective tax rate of 34% on all items |
List Of Accounts
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| Accumulated Depreciation-Equipment Administrative Expenses Bad Debt Expense Casualty Loss Cost of Goods Sold Delivery Expense Depreciation Expense Dividend Revenue Entertainment Expense Equipment Gain on Disposal of Land Gain on Sale of Plant Income Tax Expense Interest Expense Interest Revenue Loss from Earthquake Damage Maintenance and Repairs Expense Miscellaneous Selling Expenses Mortgage Payable Net Sales Office Expense Other Administrative Expenses Property Tax Expense Rent Revenue Salaries and Wages Expense Salaries and Wages Payable Sales Commission Sales Discounts Sales Returns and Allowances Selling Expenses Supplies Supplies Expenses Telephone and Internet Expense Travel Expense Prepare a multi step income Statement and A retained Earnings statement Using the List of Accounts above. |
Expert Answer
| Multistep Income Statement | ||
| Sales Revenue | Amount ($) | Amount ($) |
| Net Sales | 1305900 | |
| Cost of Goods Sold | (781300) | |
| Gross Profit Sales | 524600 | |
| Operating Expenses | ||
| Selling expenses | 74100 | |
| Administrative expenses | 57500 | (131600) |
| Income from operations | 393000 | |
| Other Revenues and Gains | ||
| Dividend revenue | 21500 | |
| Interest revenue | 7610 | 29110 |
| 422110 | ||
| Other Expenses and Losses | ||
| Write-off of inventory due to obsolescence | 83290 | |
| Casualty loss | 48000 | (131290) |
| Income before income tax | 290820 | |
| Income tax @ 34% [290820*34%] | (98879) | |
| Net income | 191941 | |
| Statement of Retained Earnings | ||||||
| Retained earnings, Jan. 1, as reported | 972830 | |||||
| Correction for overstatement of net income in prior period | ||||||
| (depreciation error) (net of $ 16558 tax) [48700*66%) | (32142) | |||||
| Retained earnings, Jan. 1, as adjusted | 940688 | |||||
| Add: Net income | 191941 | |||||
| Less: Dividends declared | (49420) | |||||
| Retained earnings, Dec. 31 | 1083209 | |||||
