Statements for Corporations and Closing Entries Question The following information is taken from the trial balance of

Question

Statements for Corporations and Closing Entries Question The following information is taken from the trial balance of GlaxonSmith Supplies Ltd. at December 31, 2014, the company's year end. GlaxonSmith has a 15% tax rate. Cash Dividends, cs.... $ 7,500 Common Shares, unlimited authorized, 9000 issued. 9,000 Cost of Goods Sold 65,000 Dividends Payable. 2,500 Interest Revenue... 300 Operating Expenses 16,900 Preferred Shares, $5 Non-Cumulative, unlimited authorized, 500 issued... 10,000 Retained earnings, beginning balance.......... 3,100 Sales Revenue ....... 90,000 Instructions - For GlaxonSmith Supplies Ltd. as of December 31, 2020 1) Prepare a Multi-Step Income Statement. Include all required sections. (10 Marks) 2) Prepare the Statement of Retained Earnings (5 Marks) 3) Record the Closing Entries (11 Marks) 4) Show the Equity Section of the Balance Sheet (6 Marks)

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Multi-Step Income Statement Particulars Amounts Revenue Sales revenue 90000 Cash Dividends 7500 Interest Revenue 300 97800 Cost of goods sold 65000 Operating Expenses 16900 81900 Profit before tax 15900 Less: Tax @15% 2385 Profit after tax 13515 Statement of Retained Earnings Particulars Amounts Opening Balance 3100 Net income 13515 Total 16615 Closing Entries Sales revenue Dr 90000 Cash dividend Dr 7500 Interest Revenue Dr 300 To Cost of Good sold 65000 To Operating Expense 16900 To Profit and loss acc 15900 Profit and loss acc Dr 2385 To Provision for tax 2385 Balance sheet Equity Section Particulars Amounts Common Shares 9000 shares @1Each 9000 Preference shares 5% non cumulative 500 shares @20 each 10000 Retained Earnings 16615 35615

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Statements for Corporations and Closing Entries Question The following information is taken from the trial balance of GlaxonSmith Supplies Ltd

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Archived Solution

Multi-Step Income Statement
Particulars		Amounts
Revenue
Sales revenue	90000
Cash Dividends	7500
Interest Revenue	300	97800

Cost of goods sold	65000
Operating Expenses	16900	81900

Profit before tax		15900
Less: Tax @15%		2385
Profit after tax		13515

Statement of Retained Earnings
Particulars		Amounts

Opening Balance		3100
Net income		13515

Total		16615


Closing Entries
Sales revenue Dr	90000
Cash dividend Dr	7500
Interest Revenue Dr	300
	To Cost of Good sold	65000
	To Operating Expense	16900
	To Profit and loss acc	15900

Profit and loss acc Dr	2385
	To Provision for tax	2385

Balance sheet
Equity Section
Particulars	Amounts
Common Shares
9000 shares @1Each	9000
Preference shares
5% non cumulative 500 shares @20 each	10000

Retained Earnings	16615
	35615