Use Superior Corporation's trial balance and financial statements from the previous Work Together exercise. A general journal is given in the Working Papers.

Record the following closing entries on page 19 of the general journal.

a. Close the income statement accounts with credit balances.

The adjusted trial balance for Superior Corporation for the year ended December 31 of the current year is given in the Working Papers. The beginning merchandise inventory amount is $86,789.15.

Prepare a statement of stockholders' equity for the current year. As of January 1, Superior Corporation had issued 8,000 shares of capital stock with a par value of$10.00 per share. During the fiscal year, the corporation issued 250 additional shares of capital stock.

Nike has two classes of common stock-Class A and Class B. The majority of Class A stock is owned by Philip H. Knight, cofounder and chairman of the board of directors, and Swoosh, LLC, an entity formed to manage shares formerly owned by Mr. Knight. This class of stock has different voting rights than Class B stock. For example, the Class A stockholders can elect three-fourths of the members of the board of directors. This right allows the Class A stockholders to have more control over the individuals who govern the corporation. Class B shares are publicly traded under the symbol NKE. Quarterly dividends are paid to both classes of stock. Class A stockholders also have the right to convert their shares, one for one, into Class B shares. This right allows Class A stockholders to sell their shares on the stock market.

Use the Consolidated Statements of Shareholders' Equity of Appendix B to answer the following questions.

How many shares of Class A and Class B shares are outstanding as of May 31, 2016?

The adjusted trial balance for Paulson Corporation for the year ended December 31 of the current year and forms for completing this problem are g iven in the Working Papers. The beginning balance of Merchandise Inventory is $112,825.90.

Prepare an income statement.

Many small companies use a fiscal year that is the same as the calendar year, January 1 to December 31. However, there may be several reasons why a different fiscal period would be beneficial. If the calendar year-end comes in the middle of a high sales period, a fiscal year ending at this time can be more difficult. All employees are extremely busy with sales and shipping. Because of this activity, accurately identifying sales, inventory, and accounts receivable is more difficult. If the calendar year-end comes just before the high sales period begins, an analysis of the company's financial condition will not be as favorable. The company may have borrowed money to buy a high level of inventory, so the company has higher debt and high inventory levels. Therefore, some companies choose to use a natural business year as the fiscal year, as discussed in Chapter 6.

Baker's Dozen, Inc., is a corporation that makes and sells decorative cakes, cookies, and candies. Approximately 90% of its sales are made between November 1 and February 15 because of the three holidays of Thanksgiving, Christmas, and Valentine's Day. The company spends six months May to November-preparing for its heavy sales period. The company has selected Apri l 1 to March 31 as its fiscal year. By March 31, inventory is low, most accounts receivable have been collected, and the company has not yet replaced inventory to begin preparing for the next season. Thus, this is an ideal time to end the fiscal year. Inventory is easier to count, the level of accounts receivable is lower, and more employees are available to help with the closing activities.

What other types of companies may find it beneficial to use a fiscal year different from the calendar year? What would be the ideal fiscal period for these companies? You may wish to find a local business that has a fiscal period different from the calendar year. if so, determine the reasons for selecting the fiscal period it now uses.

A form for completing this problem and an adjusted trial balance for Top-Light Corporation for the year ended December 31 of the current year are given in the Working Papers. The beginning balance of Merchandise Inventory is $90,260.72.

Prepare a balance sheet for the current year.

Capital stock outstanding on January 1                      2,000 shares
Capital stock issued during the year                          300 shares
Capital stock par value$25.00
Retained earnings, January 1                                  $50,403.31

Where is the information obtained to journalize closing entries for revenue, cost, and expenses?

What financial information does a statement of stockholders' equity report?

Cress Valley Electronics, with one store located in Nashville, has submitted its financial statements to your bank. Its owner, Donald Morris, is seeking a loan to expand his business. Use vertical analysis of Cress Valley Electronics' income statement to identify usual trends. Compose an e-mail to the bank loan officer that summarizes your findings.

Open the spreadsheet FA_CH16 and complete the steps on the Instructions tab.

The adjusted trial balance for Superior Corporation for the year ended December 31 of the current year is given in the Working Papers. The beginning merchandise inventory amount is $86,789.15.

Prepare a balance sheet for the current year.

Eastern Imports' adjusted trial balance for the year ended December 31 of the current year is given in the Working Papers. The beginning merchandise inventory amount is $128,110.24.

Prepare an income statement.

Eastern Imports' adjusted trial balance for the year ended December 31 of the current year is given in the Working Papers. The beginning merchandise inventory amount is $128,110.24.

Prepare a balance sheet for the current year.

If you have ever been to a museum of history, you probably realize that the museum artifacts and the way they are displayed tell a story. Have you ever thought about the person who created the display? A curator is a person in charge of collecting, preserving, displaying, and documenting museum objects.

In a small museum, the curator is often the only paid employee. The curator determines what objects to collect and how to safeguard them, as well as what research will be done. He or she plans the display of each object and decides what documentation will be used to tell its story. The same collection of objects can tell very different stories depending on how the curator interprets the historical data and chooses to display them.

As the only paid employee, the curator sometimes must also handle the finances and accounting for the museum. That can be a challenging task for a person who may not have any training in accounting. Also, the curator will likely have more interest in the preservation and communication of history than in the museum's finances.

Contact the curator of a museum either in person or via e-mail. Ask the curator if he or she had an accounting course. Also, ask the curator how knowledge of accounting would make him or her more effective in his or her job. Report your findings to the class.

Selected sections of the adjusted trial balance for KLT Corporation are presented in the Working Papers. The corporation's chart of accounts contains several sales accounts. KLT Corporation also has an account for interest expense. A form for completing this problem is also given in the Working Papers. The beginning balance of Merchandise Inventory is $66,964.96.

Prepare the income statement for KLT Corporation.