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COMPREHENSIVE PROBLEM 3
This comprehensive problem requires the preparation of a comprehensive income
statement, statement of retained earnings, and statement of financial position (balance)
Mountain Sports, Inc.
2 to 3 hours
Medium
a.
226,000$
2,500
223,500$
100,575
b.
21,050$
12,250
Add: Net income (from income statement)
For the Year Ended December 31, 2018
Mountain Sports, Inc.
Statement of Retained Earnings
Retained earnings, January 1, 2018
For the Year Ending December 31, 2018
Less: Sales returns and allowances
COMPREHENSIVE PROBLEM 3
Mountain Sports, Inc.
MOUNTAIN SPORTS, INC.
Income Statement
Cost of goods sold
Sales
Net Sales
c.
19,200$
2,600
110,500$
12,750$
2,500
5,000$
18,000
13,000
Mountain Sports, Inc.
Current assets:
Accounts receivable
Notes payable
LIABILITIES
Current liabilities:
Accounts payable
Total Assets
Additional paid-in capital (common stock)
COMPREHENSIVE PROBLEM 3
MOUNTAIN SPORTS, INC.
(continued)
Cash
December 31, 2018
ASSETS
Statement of Financial Position
Preferred stock, $20 par value, 250 shares issued and
Common Stock, $10 par value, 1,800 shares issued
outstanding
STOCKHOLDERS' EQUITY
