Tempe Corporation’s capital structure consists of 75,000 shares of common stock. The December 31, 2016 account balances are listed below. All adjusting entries have been made

except for the accrual of taxes (20% tax rate).
Sales	$1,303,600
Purchase discounts	18,000
Purchases	642,000
Loss on Discontinued Operations	60,000
Selling expenses	128,000
Cash	60,000
Accounts receivable	90,000
Common stock	200,000
Accumulated depreciation	198,000
Dividend revenue	8,000
Inventory, January 1, 2016	152,000
Unearned service revenue	4,400
Accrued interest payable	1,000
Land	370,000
Patents	100,000
Retained earnings, January 1, 2016	290,000
Interest expense	17,000
General and administrative expenses	150,000
Dividends declared	29,000
Allowance for doubtful accounts	5,000
Notes payable (maturity 7/1/20)	200,000
Machinery and equipment	450,000
Office Supplies	40,000
Accounts payable	60,000

Ending Inv at Dec 31, 2016 was $125,000.

Required

a) Prepare a 2016 multi-step income statement; include EPS. Refer to the Cabrera (Illustration 4-2) and Poquito (Illustration 4-8) Company examples in Chapter 4 of the text for format suggestions (Also, refer to Illustration 4-10). Many items in these format examples are not applicable to this homework problem.

b) Prepare a 2016 retained earnings statement. Refer to the Sticker example (illustration 4-19) in Chapter 4 of the text for format suggestions. No corrections of prior periods exist.

c) Prepare a 12/31/16 balance sheet. Refer to the Scientific Products (Illustration 5-16) example in Chapter 5 of the text for format suggestions. Many items in this example are not applicable to this homework problem.

Submission Instructions

1. Discussions with fellow students encouraged.

2. Word-processed answer must be created by each student individually.

3. In the upper right corner of page one, indicate:

· Name

· Course

· Assignment #

· Page # of #

4. On additional pages, indicate name and page # of # in the upper right corner.

5. Do not use a separate cover sheet, folder, or binder.

6. Use a standard paper clip; do not use a staple.

7. Organization and presentation will be a factor in your grade determination.

2GAFac supportI5 INTERMEDIATE ACCOUNTINGIACC 301_5011HomeworkIHW 112+21ACC 301_HW1_PROB_X 2+2.docx 3/4/2076