BUS 616 2015 Quiz 1AThe trial balance for Domenico Inc. as of December 31 2014 is given below. Additional information:The restructuring liability is 60% current. The notes payable are due in 2018.The company accountant erroneously failed to record the expiration of prepaid insurance of $6 000.Noncontrolling interest in income is $12 500No provision has been made for income taxes. Income tax expense is 30% of income from continuing operations before tax (round to nearest dollar).There were 100 000 common shares outstanding at all times during the year.Required: On the labelled tabs prepare a balance sheet as of December 31 2014 and an income statement for the year then ended. The financial statements should be in proper format.Accounts Payable1 07 619Accounts Receivable2 15 310Accrued Payables63 381Accumulated Depreciation3 59 445Additional Paid-in Capital82 568Administrative Expense2 26 547Allowance for Bad Debts8 400Cash1 69 384Common Stock20 000Cost of Goods Sold8 53 427Deferred Revenue (current)16 000Dividends22 000Goodwill1 80 000Interest Expense62 000Inventory4 72 911Investments1 48 200Loss on Discontinued Operations (net of tax)14 300Non-controlling interest in net assets31 600Notes Payable9 00 000Plant and Equipment13 45 377Preferred Stock10 000Prepaid Insurance36 000Restructuring Expense1 26 400Restructuring Liability1 00 000Retained Earnings January 1 20148 36 422Sales15 57 360Selling Expense1 43 945Supplies14 665Treasury Stock (common)62 32940927954092795
