10.Following balances were extracted from the books of Shri S. Pal on 31st March,2019. You
are required to prepare a Trial Balance. The amount required to balance should be entered
as capital.
Particulars Amount
Purchases 1,70,000
Provision for doubtful debts 2,380
Stock(1st April 2018) 24,000
Sales 1,05,000
Bad debts Written off 2,450
Sundry Debtors 23,800
Discount Received 3,500
Carriage outwards 700
Cash in Hand 3,500

(
7x1
-7)

Machinery 1,24,500
Provision for depreciation on Machinery 24,200
Drawings 7,700
Return Inwards 3,500
Premises 5,28,000
Sundry Creditors 16,100
Discount Allowed 2,800
Carriage Inwards 1,400
Cash at Bank 17,500
General Expenses 2,100

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event.inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded.required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)