Question 2: (70 Marks) Dzeko Corporation's capital structure consists of 82,000 ordinary shares. At December 31, 2019 an

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Question 2 70 Marks Dzeko Corporation S Capital Structure Consists Of 82 000 Ordinary Shares At December 31 2019 An 1 (66.77 KiB) Viewed 122 times

Question 2: (70 Marks) Dzeko Corporation's capital structure consists of 82,000 ordinary shares. At December 31, 2019 an analysis of the accounts and discussions with company officials revealed the following information: Sales Rent expense Depreciation expense" Purchases Loss on discontinued operations (net of tax) Advertising expenses Dividend revenue Inventory, January 1, 2019 Inventory, December 31, 2019 Retained earnings, January 1, 2019 Purchase discounts Interest expense General Salaries expenses Cash dividends declared Salesperson's salaries expenses Tax rate $1,350,000 60,000 80,000 738,000 30,000 25,000 83,000 28,000 17,000 820,000 4,000 15,000 77,000 73,000 82,000 30% *40% of the company's building was devoted to sales activities. Instructions (a) Prepare an income statement. (45 Marks) (b) Prepare a retained earnings statement. (25 Marks)