Browning Company has the following ledger accounts and adjusted balances as of December 31, 2017. All accounts have normal balances. Browning’s income tax rate is 40%. Browning has 300,000 shares of Common Stock authorized and 100,000 shares of Common Stock issued and outstanding. Accounts Payable……………………………. 26,000 Accounts Receivable………………………… 180,000 Accumulated Depreciation-Building………… 50,000 Administrative Expenses……………………. 40,000 Allowance for Doubtful Accounts…………… 20,000 Mortgage Payable …………………………… 250,000* Building……………………………………… 500,000 Cash…………………………………………. 26,000 Common Stock……………………………… 300,000 Cost of Goods Sold…………………………. 380,000 Dividends…………………………………… 20,000 Income from Operations of Division X…….. 40,000 (Division X is a component of Browning Company) Interest Revenue…………………………….. 20,000 Inventory………………………………………280,000 Land (held for future use)……………………. 200,000 Loss from Sale of Division X……………………… 80,000 (Division X is a component of Browning Company) Loss on Sale of Investments………………… .. 10,000 Paid-In Capital in Excess of Par………………116,000 Patent………………………………………… 30,000 Prepaid Insurance……………………………. 10,000** Retained Earnings, January 1, 2017………… 250,000 Sales Discounts………………………………. 20,000 Sales Revenue………………………………..990,000 Selling Expenses……………………………. 130,000 *$25,000 of the principal comes due in 2018.**Two years insurance paid in advance.Please solve for:a) multiple-step income statementb) retained earnings statementc) classified balance sheet.
RECOMMENDED!!Browning Company has the following ledger accounts
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