Tempe Corporation’s capital structure consists of 75,000 shares of common stock. The December 31, 2016 account balances are listed below. All adjusting entries have been madeexcept for the accrual of taxes (20% tax rate).

Tempe Corporation’s capital structure consists of 75,000 shares of common stock. The December 31, 2016 account balances are listed below. All adjusting entries have been madeexcept for the accrual of taxes (20% tax rate).

Sales

$1,303,600

Purchase discounts

18,000

Purchases

642,000

Loss on Discontinued Operations

60,000

Selling expenses

128,000

Cash

60,000

Accounts receivable

90,000

Common stock

200,000

Accumulated depreciation

198,000

Dividend revenue

8,000

Inventory, January 1, 2016

152,000

Unearned service revenue

4,400

Accrued interest payable

1,000

Land

370,000

Patents

100,000

Retained earnings, January 1, 2016

290,000

Interest expense

17,000

General and administrative expenses

150,000

Dividends declared

29,000

Allowance for doubtful accounts

5,000

Notes payable (maturity 7/1/20)

200,000

Machinery and equipment

450,000

Office Supplies

40,000

Accounts payable

60,000

Ending Inv at Dec 31, 2016 was $125,000.

Required

a) Prepare a 2016 multi-step income statement; include EPS. Refer to the Cabrera (Illustration 4-2) and Poquito (Illustration 4-8) Company examples in Chapter 4 of the text for format suggestions (Also, refer to Illustration 4-10). Many items in these format examples are not applicable to this homework problem.

b) Prepare a 2016 retained earnings statement. Refer to the Sticker example (illustration 4-19) in Chapter 4 of the text for format suggestions. No corrections of prior periods exist.

c) Prepare a 12/31/16 balance sheet. Refer to the Scientific Products (Illustration 5-16) example in Chapter 5 of the text for format suggestions. Many items in this example are not applicable to this homework problem.

Submission Instructions

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