Financial Statement Preparation Assignment Required:

Financial Statement Preparation Assignment

Required:

Prepare a statement of financial position, multi-step income statement and statement of retained earnings in proper financial statement format for Marmidan Corporation Inc. for the year ended December 31, 2015 from the company’s pre-closing trial balance below. Marmidan Corporation Inc. is a private corporation that was incorporated on January 1, 2015. Your solution must be typed, font 12 and submitted with a cover sheet containing your name and student i.d. number.

Debit                            Credit

Prepaid expenses                                                        $      25,693

Land (cost)                                                                       120,000

Building (cost)                                                                 149,398

Accrued liabilities                                                                                                       37,100

Sales                                                                                                                          754,750

Selling expense                                                                176,035

Interest income on investments                                                                                    8,000

Gain on sale of investments                                                                                        45,095

Building, accumulated depreciation                                                                             3,845

Income tax payable                                                                                                     14,370

Accounts receivable, trade                                               158,395

Goodwill (cost)                                                                  25,930

Cash                                                                                   10,810

Bank operating line of credit                                                                                      10,000

Equipment (cost)                                                             243,450

General and administrative expenses                              145,760

Inventory                                                                           89,194

Accounts payable                                                                                                        37,899

Dividends payable                                                                                                        2,000

Financial expenses                                                            15,000

Loan payable to shareholder due on demand                                                                3,743

Income tax expense                                                            8,370

H.s.t.  payable                                                                                                                9,157

Bond payable, 4%, repayable $12,000 per year until maturity                                 120,000

Customer deposits payable                                                                                         10,900

Equipment, accumulated depreciation                                                                        47,195

Common shares                                                                                                         450,000

Cost of goods sold                                                           375,250                            1554054

Dividends declared                                                            10,769

1554054

Marmidan Corporation Inc.Income statementFor the year ended December 31, 2015$Sales 754,750 Less: cost of goods sold (375,250) Operating income 379,500 Interest income on investments 8,000 Gain…