1.
Income Statement: Income Statement is a financial statement that is prepared by all the companies by enumerating all the expenses and revenues to calculate the resulting difference of Net
To prepare: Company’s income statement for the year ended December 31, 2016.
2.
To prepare: Company’s statement of retained earnings for the year ended December 31, 2016.
3.
Balance Sheet: A Balance Sheet is a statement showing the position of the assets, liabilities and the owner’s equity at the end of the financial year.
To prepare: Company’s classified balance sheet at December 31, 2016.
4.
Closing entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as retained earnings. It is passed at the end of the accounting period, to transfer the final balance.
To Prepare: The closing entries for BI System at December 31, 2016.
5.
Formula:
To calculate: The Company’s current ratio at December 31, 2016.
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Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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