The Following Information Was Taken from the Accounting Records of Jamboree

question 164

Essay

The following information was taken from the accounting records of Jamboree Ltd.at December 31,2017.The company uses a periodic inventory system.The income tax rate is 40%.
Preferred shares,$2.50,100,000 shares authorized,
$\begin{array}{ll}\quad 4,000 \text { shares issued } & \$ 150,000 \\\text { Retained earnings, balance as of January } 1,2017 & 239,000 \\\text { Purchases } & 975,000 \\\text { Losson sale of discontinued segment } & 50,000 \\\text { Sales revenue (net) } & 1,550,000 \\\text { Selling expenses } & 232,000 \\\text { Inventory, January 1 } 2017 & 71,000 \\\text { Preferred dividends } & 10,000\\\text { Common dividends } & 13,500 \\\text { Administrative expenses } & 107,000 \\\text { Purchase returns and allowances } & 12,000 \\\text { Operating income, discontinued segment } & 60,000 \\\text { Purchase discounts } & 9,000 \\\text { Loss on expropriation of land } & 35,000\end{array}$ Common shares,unlimited number of shares authorized,
500,000 shares issued $\quad$$\quad$ 900,000 There were no share transactions in 2017.The ending inventory count showed a December 31,2017 balance of $62,000.
Prepare a multi-step income statement and a statement of retained earnings for the year ended December 31,2017.Present cost of goods sold as a line item with a supporting schedule for the calculation.

---

Definitions:

Accommodation

Adjusting one's schemas and understanding to incorporate new and differing information or experiences.

Schematization

The process of organizing information or experiences into schemas, which are mental structures that represent some aspect of the world.

Observational Learning

Learning through watching the behavior of others.

Classical Conditioning

A conditioning method in which two stimuli are consistently paired together; over time, the reaction that was once generated by the second stimulus is drawn out by the first stimulus instead.