Financial Statement Preparation Assignment

Required:Prepare a statement of financial position, multi-step income statement and statement of retained earnings in proper financial statementformat for Marmidan Corporation Inc. for the year ended December 31, 2015 from the company’s pre-closing trial balance below. MarmidanCorporation Inc. is a private corporation that was incorporated on January 1, 2015. Your solution must be typed, font 12 and submittedwith a cover sheet containing your name and student i.d. number.Debit CreditPrepaid expenses $ 25,693Land (cost) 120,000Building (cost) 149,398Accrued liabilities 37,100Sales 754,750Selling expense 176,035Interest income on investments 8,000Gain on sale of investments 45,095Building, accumulated depreciation 3,845Income tax payable 14,370Accounts receivable, trade 158,395Goodwill (cost) 25,930Cash 10,810Bank operating line of credit 10,000Equipment (cost) 243,450General and administrative expenses 145,760Inventory 89,194Accounts payable 37,899Dividends payable 2,000Financial expenses 15,000Loan payable to shareholder due on demand 3,743Income tax expense 8,370H.s.t. payable 9,157Bond payable, 4%, repayable $12,000 per year until maturity 120,000Customer deposits payable 10,900Equipment, accumulated depreciation 47,195Common shares 450,000Cost of goods sold 375,250 1554054Dividends declared 10,7691554054