Financial Statement

FinancialStatement

Required:

Preparea statement of financial position, statement of earnings, andstatement of retained earnings in proper financial statement formatfor Marmidan Corporation Inc., a private corporation incorporated onJanuary 1, 2014, for the year ended December 31, 2014 based on thefollowing data from the company’s pre-closing trial balance:

Prepaidexpenses $ 5,693

Land(cost) 100,000

Building(cost) 139,398

Accruedliabilities 27,100

Sales854,750

Sellingexpense 176,035

Interestincome on investments 8,000

Gainon sale of investments 5,095

Building,accumulated depreciation 3845

Incometax payable 8,370

Accountsreceivable, trade 158,395

Goodwill(cost) 24,930

Cash 9,810

Bankoperating line of credit 10,000

Equipment(cost)243,450

Generaland administrative expenses145,760

Inventory 83,194

Accountspayable 37,899

Financialexpenses 15,000

Loanpayable to shareholder due on demand3,743

Incometax expense 8,370

H.s.t. payable 9,157

Bondpayable, 4%, repayable $10,000 per year until maturity 120,000

Customerdeposits payable 10,900

Equipment,accumulated depreciation 45,195

Commonshares 450,000

Costof goods sold 475,250 1594054

Dividendsdeclared 8,769

1594054

Astatement of financial statement also known as a balance sheetpresents the financial position of a particular entity at a specificgiven period or date (Bernstein&amp Wild,2000).Statementsof retained earnings play the role of reconciling changes in theretained earnings accounting during a reporting period.

MarmidanCorporation Inc

Statementof financial position

Foryear ended 31stDec 2014

DETAILS DR CR

NONCURRENT ASSETS

Land(cost) 100,000

Building(cost) 135,533

Equipment(cost)198,255

Goodwill(cost) 24,930

CURRENTASSETS

Prepaidexpenses 5,693

Accountsreceivable, trade 158,395

Cash 9,810

Inventory 83,194

715830

NONCURRENT LIABILITIES

Bankoperating line of credit 10,000

Loanpayable to shareholder due on demand3743

Bondpayable, 4%, repayable $10,000 per year until maturity 120,000

CURRENTLIABILITIES

Accountspayable 37,899

Accruedliabilities 27,100

Incometax payable 8,370

H.s.t. Payable 9,157

Customerdeposits payable 10,900

227,169

SHAREHOLDERS EQUITY

P&ampLAccount 38,661

Commonshares 450,000

488661

715830

MarmidanCorporation Inc

Statementof earnings

Foryear ended 31stDec 2014

DETAILS DR CR

Sales854,750

Less:cost of sales

Costof goods sold 475,250

GrossProfit 379500

Expenses

Sellingexpense 176,035

Generaland administrative expenses 145,760 Financialexpenses 15,000

Incometax expense 8,370

345165

NetIncome 34335

MarmidanCorporation Inc

Statementof Retained earnings

Foryear ended 31stDec 2014

Revenues

Netincome 34,335

Interestincome on investments 8,000

Gainon sale of investments 5,095

Less:Dividend declared

Dividendsdeclared 8,769

RetainedEarnings 38661

Reference

Bernstein,A.L &amp Wild,J. (2000). Analysisof s.Pennsylvania:McGraw-HillEducation.

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