Extra Credit ProblemThese items are taken from the 2020 trial balance of Suarez Inc. (Assume no taxes):70,000Accounts payableSales Revenue535,000Unearned Revenue15,00075,000Salaries expenseCommon StockLand239,000260,000Inventory75,000Cost of goods sold420,000Retained earnings (beginning)113,000Advertising expense15,000Accounts receivable90,000Prepaid insurance expense5,000Notes payable (due 2024)20,000Insurance expense5,000Cash45,000Interest expense2,000Other revenue from Investments8,000Dividends8,000Required:In an excel spreadsheet:a.Use an excel spreadsheet and prepare a multi-step income statement (Exhibit 3.1 inbook an example), statement of stockholders' equity (Exhibit 1-4 an example), and aclassified balance sheet (Exhibit 2.8 in book as an example) for December 31, 2020for Suarez Inc. (Points will be awarded for neatness and format).[Hint: First prepare the income statement because the net income carries to thestatement of stockholders' equity where it and dividends impact the retained earningsbalance, the updated retained earnings balance then finds its way to the balance sheet].

These items are taken from the 2020 trial balance of Suarez Inc. (Assume no taxes): Accounts payable Sales Revenue 70,000 535,000 Unearned Revenue 15,000 75,000 Salaries expense Common Stock 239,000 Land 260,000 Inventory 75,000 Cost of goods sold 420,000 Retained earnings (beginning) 113,000 Advertising expense 15,000 Accounts receivable 90,000 Prepaid insurance expense 5,000 Notes payable (due 2024) 20,000 Insurance expense 5,000 Cash 45,000 Interest expense 2,000 Other revenue from Investments 8,000 Dividends 8,000

These items are taken from the 2020 trial balance of Suarez Inc. (Assume no taxes): Accounts payable Sales Revenue 70,000 535,000 Unearned Revenue 15,000 75,000 Salaries expense Common Stock 239,000 Land 260,000 Inventory 75,000 Cost of goods sold 420,000 Retained earnings (beginning) 113,000 Advertising expense 15,000 Accounts receivable 90,000 Prepaid insurance expense 5,000 Notes payable (due 2024) 20,000 Insurance expense 5,000 Cash 45,000 Interest expense 2,000 Other revenue from Investments 8,000 Dividends 8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Extra Credit Problem
These items are taken from the 2020 trial balance of Suarez Inc. (Assume no taxes):
70,000
Accounts payable
Sales Revenue
535,000
Unearned Revenue
15,000
75,000
Salaries expense
Common Stock
Land
239,000
260,000
Inventory
75,000
Cost of goods sold
420,000
Retained earnings (beginning)
113,000
Advertising expense
15,000
Accounts receivable
90,000
Prepaid insurance expense
5,000
Notes payable (due 2024)
20,000
Insurance expense
5,000
Cash
45,000
Interest expense
2,000
Other revenue from Investments
8,000
Dividends
8,000
Required:
In an excel spreadsheet:
a.
Use an excel spreadsheet and prepare a multi-step income statement (Exhibit 3.1 in
book an example), statement of stockholders' equity (Exhibit 1-4 an example), and a
classified balance sheet (Exhibit 2.8 in book as an example) for December 31, 2020
for Suarez Inc. (Points will be awarded for neatness and format).
[Hint: First prepare the income statement because the net income carries to the
statement of stockholders' equity where it and dividends impact the retained earnings
balance, the updated retained earnings balance then finds its way to the balance sheet].

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