Chapter 4, Problem 4.9E

(a)

To determine

Income Statement: Income Statement is prepared by all the companies by reporting all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Retained Earnings Statement: Retained Earnings Statement is the shows the balance of retained earnings left at the end after including the net profit/ net loss and distributing the dividend to the stockholders.

Classified Balance Sheet: A classified Balance Sheet represents the financial information under different heads of classification in order to make it easy for the users of financial statements to understand the financial position of the company.

Classification Heads

• Current Assets
• Long-Term Investments
• Property Plant and Equipment
• Intangible Assets
• Current Liabilities
• Long-Term Liabilities
• Stockholder’s Equity

To Prepare: Income Statement of P Company.

(b)

To determine

To Prepare: Balance Sheet of P Company.