Moran Enterprises, Inc., has the following account balances and other information in alphabetical order at Dec. 31, 2012. All balances are as of the end of the year except Retained Earnings. Prepare a multi?step income statement and a classified balance sheet in proper form using accrual accounting. Solution Income Statement Earnings available for equity sahreholders =59000 Dividend proposed = 14000 Transferred to retained earnings = 45000 (59000-14000) Cash .

1. Moran Enterprises, Inc., has the following account balances and other information in
alphabetical order at Dec. 31, 2012. All balances are as of the end of the year except Retained
Earnings. Prepare a multi?step income statement and a classified balance sheet in proper form
using accrual accounting.
Solution
Income Statement
Earnings available for equity sahreholders =59000
Dividend proposed = 14000
Transferred to retained earnings = 45000 (59000-14000)
Cash
Particulars Amount
Sales revenue 220000
Add: Unearned revenue 21000
Total (A) 241000
Operating expenses 47000
Cost of goods sold 120000
Total (B) 167000
Earning before interest and tax (A) - (B) 74000
Less: Interest 5000
EBT 69000
Less : Tax expense 10000