The following is an alphabetical list of accounts for Pembroke…
The following is an alphabetical list of accounts for Pembroke Corporation for the current year. All accounts have normal balances. The Income Tax rate is 40%.
Accounts Payable $23,600
Accounts Receivable $34,800
Accumulated Depreciation—Buildings $105,000
Accumulated Depreciation—Equipment $100,000
Additional Paid in Capital in Excess of Par $333,100
Advertising Expense $17,000
Allowance for Doubtful Account $8,750
Bad Debt Expense $2,700
Buildings $435,000
Cash $24,500
Common Stock $10 par $80,000
Delivery Expense $7,700
Depreciation Expense—Buildings $10,000
Depreciation Expense—Equipment $4,500
Dividends $5,800
Equipment $200,000
Income Tax Expense ?
Income Taxes Payable $18,270
Insurance and Property Tax Expense $8,500
Interest Expense $3,700
Inventory Beginning of the Year $37,800
Inventory End of the Year $34,100
Land $265,000
Loss on the Sale of Office Equipment $5,000
Mortgage Payable $30,000
Office and Administrative Salaries Expense $32,000
Office and Administrative Salaries Payable $5,500
Office Supplies Expense $5,500
Prepaid Expenses $6,400
Purchase Discounts Taken $4,100
Purchase Returns and Allowances $6,200
Purchases $173,000
Rent Revenue $16,900
Retained Earnings Beginning of the Year $283,700
Sales $340,700
Sales Commissions and Salaries $18,200
Sales Discounts Taken $4,900
Sales Returns and Allowances $12,100
Sales Supplies Expense $5,600
Short-term Note Receivable $15,000
Transportation-In $13,500
Unearned Rent Revenue $8,500
REQUIRED: Prepare in good form the Multistep Income Statement; the Statement of Changes in Retained Earnings; and a classified Balance Sheet for Pembroke Company for the current year.