Problems Prepare the problems below using Excel….
Problems Prepare the problems below using Excel. Upload the workbook using the link. 1. (21 points) ‘Presented below is information related to Richardson Corp. for the year 2020. Net sales $2,173,100 Loss from operation of discontinued component of business $233,600 Effect on prior years of change in accounting principle (credit) $186,400 Interest revenue $17,600 Interest expense $43,400 Dividends declared on common shares $81,000 Dividends declared on preferred shares $50,500 Dividend revenue $30,900 Administrative expenses $63,500 Cost of goods sold $1,112,600 Selling expenses $100,500 Write-off of goodwill due to impairment $60,300 Depreciation expense omitted in 2015 $125,700 Gain from disposal of component of business $304,000 Federal tax rate of 40% on all items Required: Prepare a multiple-step income statement for 2020. Assume that 239,400 shares of common stock were outstanding during 2020. 2. (30 points) Given the following account information for Leong Corporation, which began operations in 2018, prepare a classified balance sheet in good form for the company as of December 31, 2018. All accounts have normal balances. Equipment $63,280 Interest Expense $2,580 Interest Payable $560 Retained Earnings ? Dividends $50,060 Land $140,120 Accounts Receivable $99,140 Bonds Payable $76,020 Notes Payable (due in 6 months) $32,700 Common Stock $69,540 Accumulated Depreciation – Equip. $9,160 Prepaid Advertising $5,380 Service Revenue $351,760 Buildings $82,740 Supplies $1,980 Income Taxes Payable $3,060 Utilities Expense $1,360 Advertising Expense $1,460 Salaries and Wages Expense $51,100 Salaries and Wages Payable $920 Accumulated Depreciation – Building $15,400 Cash ? Depreciation Expense $7,840 3. (30 points) Selected financial statement information and additional data for Stanislaus Co. is presented below. Prepare a statement of cash flows in good form for the year ending December 31, 2019. December 31 2018 2019 Cash $42,000 $68,000 Accounts receivable (net) $84,000 $137,900 Inventory $168,000 $209,900 Land $58,800 $21,000 Equipment $504,000 $789,600 TOTAL $856,800 $1,226,400 Accumulated depreciation $84,000 $115,600 Accounts payable $40,400 $79,000 Payroll taxes payable $10,000 $7,000 Notes payable – long-term $235,200 $331,800 Common stock $420,000 $487,200 Retained earnings $67,200 $205,800 TOTAL $856,800 $1,226,400 Additional data for 2019: 1. Net income was $222,800. 2. Depreciation expense was $31,600. 3. Land that orignally cost $43,500 was sold for $40,000 cash. Additional land was purchased for cash. 4. Dividends of $84,200 were paid. 5. A long-term note for $201,600 was issued to pay for an equipment purchase. Other equipment was purchased for cash. 6. Common stock was issued to pay $67,200 on a long-term note payable. Additional cash repayments were made on the long-term note payable.