The balance sheet is broken down into a classified balance sheet, while, at this

The balance sheet is broken down into a classified balance sheet, while, at this point, the income statement, statement of retained earnings, and statement of cash flows remain unchanged. With this extra credit assignment, you will be able to review Collins Consignment Company which has an incomplete set of financial records. The founder of the company wants to get a loan and needs to show the company’s equity has grown. With the preliminary account balances and some adjusting entries, you will be able to determine if the company will or will not qualify for the loan.
Unfinished financial information for Colling Consignment Sales Company is provided in the attached file. The data provided contains T-accounts with balances created by an accountant who has since left the company. There are adjusting entries that have not been made to these accounts and the required adjustments are given. The company needs to get a loan from a bank and to do that they need to show the stockholders’ equity has grown from its original $40,000 balance.
Prepare an income statement in a proper form showing net income after the adjustments have been posted. All adjustments to the original account balances must be shown. The use of an accountant’s worksheet is acceptable as an alternative.
Determine the amount that Stockholder’s Equity has increased/decreased. Be sure to consider dividends paid when making this assessment.
Indicate in a full grammatically correct sentence if the company will or will not qualify for the loan.
Your work must be readable and noted back to the requirement you are addressing. Final answers should be easily found by using good grammar.
RUBRIC
Proper Labeling of Assignment
Your submission has been properly labeled. To verify how to properly label your work for Canvas Assignments, please see the Course Overview Section.
This criterion is linked to a Learning OutcomeLogical/Neat Presentation
Your work must be readable and noted back to the requirement you are addressing. Final answers should be easily found by use of good grammar, reference, and a double underline/bolding/highlighting. Submission explanations (if required) should not run off the page. Instead, cells should be wrapped to contain them within the confines of the width of one page.
Prepare Financial Statement Required
The financial statement that will help address the issue is the Income Statement. An Income Statement is prepared on a formal basis and is in the proper format (use of the accountants worksheet is acceptable). For any numbers requiring a calculation, you must show your work. Just showing numbers does not constitute showing your work. You need to give the formula you are using in words and then show substitution.
Calculate accurate Net Income
Once the Income Statement is prepared, the correct Net Income is calculated. All appropriate work is shown and the statement contains two columns of numbers.
Stockholder’s Equity impact
The correct impact on the stockholder’s equity is identified. The amount that SE has increased or decreased for the year is identified. Be sure to take into account how much of the net income was paid out in dividends.
This criterion is linked to a Learning OutcomeLoan Expectations
A full grammatically correct sentence or two describing why the company can expect to get or not get the loan.