design studio

Assignment Details
Using the following information, prepare a multiple-step income statement for Design Studio:
Design Studio
Adjusted Trial Balance
December 31, 2020
Debit Credit
Cash $ 33,490
Accounts Receivable 7,625
Inventory 87,625
Land 47,550
Building 450,000
Accumulated Depreciation 95,000
Notes Payable 102,000
Accounts Payable 42,600
Interest Payable 5,250
Common Stock 20,000
Additional Paid-In Capital 240,000
Dividends 15,000
Retained Earnings 92,265
Sales 867,500
Sales Discounts 17,325
Cost of Goods Sold 698,000
Salaries 76,800
Utilities 7,500
Repairs & Maintenance 3,675
Telephone 2,500
Interest Expense 6,525
Depreciation Expense 11,000
$1,464,615 $1,464,615
The following is additional information needed for financial statement preparation:
Pretax loss due to hurricane damage on the building: $7,835 (Assume that the building is not located in an area that sustains frequent hurricane damage.)
Pretax loss due to the discontinuation of the home delivery segment: $5,915
Effective income tax rate: 35%
Prepare the income statement using the template provided.
SoccerBox Inc., is preparing a balance sheet for the year ended December 31, 2021. The following amounts were correct at December 31, 2021:
Cash: $68,000
Accounts receivable (A/R): $81,000
Inventory: $134,000
Prepaid inventory: $1,500
Investment in stock affiliate company (Z Corporation): $40,000 (The investment is considered noncurrent.)
Equipment: $87,000
Used equipment held for disposal (not used in the day-to-day activities of the organization): $8,000
Accumulated depreciation (ACC DEP) of equipment: $29,000
Accounts payable (A/P): $62,500
Notes payable (N/P; noncurrent): $42,000
Income taxes payable: $10,000
Retained earnings (R/E): $126,000
Common stock: The company had 100,000 shares outstanding. When sold, the par value was $1.00 per share. Stock was sold and issued at $1.50 per share.
Prepare the balance sheet using the template provided.
Prepare a multistep income statement and a classified balance sheet for each company using the template provided.
Click on the following link to download the template:
ACCT315 Unit 2 IP Template
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head. The title should be in all capitals.
Length: 2 pages
Abstract: This is a summary of your paper, not an introduction. Begin writing in third person.
Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 2 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

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