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1. Visit the SEC's Web site (http://idea.sec.gov/idea/searchidea/companysearch_idea.html).;? Select a company filing of your choice that contains a multiple-step income statement.;? Communicate your selection with your group (each of you should submit a different company).;? Submit the link to this filing as proof of your research.;2. Prepare a process documentation that;? is prepared in a professional manner because it will be the desktop guide used by others in the event of your absence to prepare the financial statements for Music Warehouse.;? is in the form of a memorandum or as a numbered listing of items, depending on your individual preference.;3. Include the following elements;? a definition and description of the specific sections of the income statement;? a description of the different methods of preparing income statements;? an explanation of the conceptual guidelines for reporting income;? how to handle the special types of income statement items;--------------------------------------------------------------------------------------------------------------------------------------;Using the information below, do the following;Prepare a multiple-step income statement for Music Warehouse.;Prepare a statement of changes in stockholder's equity for Music Warehouse.;You may work together, or you may assign each group member a different financial statement or part of the assignment to work on.;Music Warehouse;Adjusted Trial Balance;December 31, 2008;Debit;Credit;Cash;$24,675;Accounts Receivable;5,625;Inventory;65,980;Land;93,000;Building;289,000;Accumulated Depreciation;75,000;Notes Payable;85,000;Accounts Payable;53,600;Interest Payable;4,750;Common Stock;10,000;Additional Paid-in Capital;120,000;Dividends;10,000;Retained Earnings;59,980;Sales;937,500;Sales Discounts;22,675;Cost of Goods Sold;723,000;Salaries;81,000;Utilities;8,900;Repairs & Maintenance;5,225;Telephone;2,850;Interest Expense;4,400;Depreciation Expense;9,500;$1,345,830;$1,345,830;The following is additional information needed for financial-statement preparation;Loss as a result of hurricane damage on the building: $17,000 (assume that the building is not located in an area that sustains frequent hurricane damage.);Loss because of the discontinuation of the cassette tape music segment: $26,875;Beginning of the year balance of common stock: $8,000 (assume that changes are related to issuance of common stock.);Beginning of the year balance of additional paid-in capital: $102,000;Effective income tax rate: 35%

 

Paper#74750 | Written in 18-Jul-2015

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