Financial Statement Group project

Please add your file.

Group Portion:

Using the information below, do the following:

Prepare a multiple-step income statement for Music Warehouse.
Prepare a statement of changes in stockholder's equity for Music Warehouse.
You may work together, or you may assign each group member a different financial statement or part of the assignment to work on.

Music Warehouse

Adjusted Trial Balance

December 31, 2008

Debit

Credit

Cash	
$24,675

 

Accounts Receivable	
5,625

 

Inventory	
65,980

 

Land	
93,000

 

Building	
289,000

 

Accumulated Depreciation	
 

75,000

Notes Payable	
 

85,000

Accounts Payable	
 

53,600

Interest Payable	
 

4,750

Common Stock	
 

10,000

Additional Paid-in Capital	
 

120,000

Dividends	
10,000

 

Retained Earnings	
 

59,980

Sales	
 

937,500

Sales Discounts	
22,675

 

Cost of Goods Sold	
723,000

 

Salaries	
81,000

 

Utilities	
8,900

 

Repairs & Maintenance	
5,225

 

Telephone	
2,850

 

Interest Expense	
4,400

 

Depreciation Expense	
9,500

 

 

$1,345,830

$1,345,830

The following is additional information needed for financial-statement preparation:

Loss as a result of hurricane damage on the building: $17,000 (assume that the building is not located in an area that sustains frequent hurricane damage.)
Loss because of the discontinuation of the cassette tape music segment: $26,875
Beginning of the year balance of common stock: $8,000 (assume that changes are related to issuance of common stock.)
Beginning of the year balance of additional paid-in capital: $102,000
Effective income tax rate: 35%
Please add your file.

The following grading criteria will apply to this assignment:

Grading Criteria

Individual Portion

Submit a link to a company filing of your choice that contains a multiple-step income statement as proof of your research.

10%

Prepare process documentation that

is prepared in a professional manner because it will be the desktop guide used by others in the event of your absence to prepare the financial statements for Music Warehouse.
is in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
includes the following:
a definition and description of the specific sections of the income statement
a description of the different methods of preparing income statements
an explanation of the conceptual guidelines for reporting income
how to handle the special types of income statement items
30%

Group Portion

Prepare a multiple-step income statement for Music Warehouse.

30%

Prepare a statement of changes in stockholder's equity for Music Warehouse.

30%

TOTAL 

100%

This assignment will be assessed using the rubric provided here.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Unit Materials

Unit 4