Prepare Chester, Inc, Income Statement, Balance Sheet, Statement of Retained Earnings, & Statement of cash flow (indirect method).
· Land with the land improvements were sold at book value (no gains or losses) in 2014. Use following accounts- Land, Building and Land Improvements & Other Non-current assets)
· New equipment purchased with Cash for $2,739,067 in 2014
· New Storage Building purchased with cash for $135,000 in 2015
· No investments have been sold or purchased in 2014 or 2015
There are currently 8,275,000 shares of common stock outstanding. No common stock gas been sold or repurchased in any of the after.
The proper format to use for the income statement is:
Less: Sales Returns & Allowances
Cost of Goods Sold
Total Operating Expenses
Income Before Other Gains & Losses
Other Gains & Losses
Total Other Gains & Losses
Income Before Income Taxes
Federal Income Tax Expense
State Income Tax Expense
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