Reference no: EM131294443

Johnny Singh Corporation. Selected data follows:

Sales and expense data for the year ended 12/31/16:

Gross revenue $51,095,000; Returns $3,380,000

Selling expenses:

Payroll $4,431,000; benefits $1,650,000, travel $420,200; supplies $560,350, commissions $622,300, marketing $790,000, postage $292,100, misc $182,300.

Administrative expenses:

Distribution $1,712,310, warehouse $1,020,220, IT $516,420, finance $615,270, human resources $285,450; administrative $530,600, depreciation $156,100.

Other Gains and Losses

Sold a marketable security at a loss of $113,200

Sold a building at a gain of $102,200.

Irregular Items:

Loss on sale of discontinued division of $875,000 before tax effect.

Tax rates: 35% for both companies:

Outstanding shares of common stock:

3,100,000 $1PV shares authorized, 950,000 shares issued and outstanding.

Dividends: company paid cash dividends of $1.50 per share.

Selected Balance Sheet Information:

Cash $2,310,000           Marketable securities (at cost $652,430, at fair value $699,400)

Account receivable (gross $2,935,400 less allowance for doubtful accounts of $172,300);

Prepaid expenses $61,310.        Plant assets at cost $19,240,000, accumulated depreciation $8,245,000.

Accounts payable, $693,450,     accrued expense payable $201,220,                 

bonds payable $1,809,466,        Capital stock $2,210,000,

beginning retained earnings $1,850,500.

Finished goods inventory, opening balance $322,640, purchases $14,892,400, ending balance $285,420.

Required:

1) Prepare a classified balance sheet. Please show all calculations.