Chapter 4, Problem 4.17E

(a)

To determine

Income Statement: Income Statement is prepared by all the companies by reporting all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Retained Earnings Statement: Retained Earnings Statement is the statement showing the balance of retained earnings left at the end of the period after including the net profit for the period and distributing the dividend to the stockholders.

Classified Balance Sheet: A classified Balance Sheet represents the financial information of balance sheet, under different heads of classification, in order to make it easy for the users of financial statements, to understand the financial position of the company.

Classification Heads

• Current Assets
• Long-Term Investments
• Property Plant and Equipment
• Intangible Assets
• Current Liabilities
• Long-Term Liabilities
• Stockholder’s Equity

To Prepare: Income Statement.

(b)

To determine

To Prepare: Balance Sheet of N Company.