Chapter 10, Problem 10.8AP

To determine

Multi-step Income Statement

This is a financial statement which shows income and subtotals of expenses in detail for a given period of time to arrive at the bottom line, net income. Multi-step income statement reports gross margin on sales, net operating margin, and net income.

Statement of retained earnings:

Owner’s equity represents the owner’s clime in the organization assets. It includes balance in previous year earnings, dividends declarations, net income and closing balance of retained earnings.

Balance sheet:

Balance Sheet: It is a financial position statement, which represents all the assets, liabilities, and stockholders’ equity of a concern on a particular date. The balance sheet displays that, on a particular date, all the assets of a concern must be equal with the sum of liabilities and stockholders’ equity.

To Prepare: The income statement of “U” Company on December 31, 2019.

To determine

To Prepare: The retained earnings statement of “U” Company on December 31, 2019.

To determine

To Prepare: The classified balance sheet statement of “U” Company on December 31, 2019.