Question

In: Accounting

Problem II Multiple-step income statement--Perpetual Inventory --Presented below is information related to Katie Company for the...

Problem II Multiple-step income statement--Perpetual Inventory --Presented below is information related to Katie Company for the year 2015. Note that all the accounts may not be needed.   All numbers are pretax. (20 Points)

Administrative Expenses …………………………………………     400,000         C/S Shares Issued          120,000

Unrealized loss on Available for Sale Securities………                          60,000     Treasury Shs                20,000

Interest Revenue …………………………………………………     150,000           Shares Outstanding       100,000

Realized Loss on Sale of Delivery Equipment ………………      150,000

Discontinued Operations………………..…………………..…            400,000

Sales     …………………………………………………………… 4,650,000

Selling Expenses ……………………….…………………………     300,000

Allowance for Doubtful Accounts ………………………………..       50,000

Cash Dividends Declared and Paid on Common Stock ………….    200,000

Cash Dividends Declared and Not Paid on Preferred Stock …….      100,000

Loss resulting from Computation Error in Previous ………….…     200,000

Unearned Revenue………………………………………………..            75,000

Cost of Goods Sold ……………………………………………… 2,6 00,000

Sales Returns and Allowance …………………………………….      50,000

Beginning Balance—Retained Earnings ……………………….    2,000,000

Beginning Balance— Accumulative Other Comprehensive Inc…      150,000  

Other Information:   Assume a 30% tax rate. Answer the following questions. If possible, please show all work.

1. Net Sale -----------------------------------------------------------------     $__________________

2. Income From Operations--------------------------------------------   $__________________

3. Total Gains and Losses    -------------------------------------------- $__________________

Taxes ---------------------------------------------------------------------    $__________________

income from continuing operations before ?                               $__________________    EPS__________

?__________________________________________________           $__________________      EPS__________

Net Income ---------------------------------------------------------------    $__________________      EPS__________

For questions 7 to 9, assume Net Income is $800,000

8.Total Comprehensive Income --------------------------------------- $__________________

9.Ending Balance for Accumulative Comprehensive Income ------     $__________________

10.Beginning Retained Earnings …………………………………………      $3,000,000

+ or –

= Ending Retained Earnings ……………………………………….   $__________________

Solutions

Expert Solution

1. Net sale : 4,700,000

2. Incomw from operations : 1,350,000

3. Total gains : 1,750,000

4. Taxes : 525,000

5. Income from continuing operation before TAX : 135000 EPS: 10.21

7. net income before tax : 1,750,000

8. Total comprehensive income : 500000

9. Ending balance of total comprehensive income : 2,000,000 + 150,000 + 500,000 = 2,650,000

10. Ending retained earnings : 2500,000

10.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Multiple-step income statement (show your work) Presented below is information related to Donaldson Corp., for the...
Multiple-step income statement (show your work) Presented below is information related to Donaldson Corp., for the year 2017. Net sales                                                                                                   $1,950,000 Cost of goods sold                                                                                      1,200,000 Selling expenses                                                                                              95,000 Administrative expenses                                                                                  70,000 Dividend revenue                                                                                             30,000 Interest revenue                                                                                               20,000 Interest expense                                                                                              45,000 Write-off of goodwill due to impairment                                                           75,000 Depreciation expense omitted in 2015                                                          105,000 Dividends declared                                                                                        120,000 Effect on prior years of change in accounting principle (credit)                    220,000 Loss from operations of discontinued component of business                     240,000 Gain from...
Presented below is information related to Tobias Corp., for the year 2020. Required: Prepare a multiple-step...
Presented below is information related to Tobias Corp., for the year 2020. Required: Prepare a multiple-step Income Statement and Statement of Retained Earnings for 2020 in good form (with headings). Assume the 300,000 shares of common stock were outstanding during 2020. Administrative Expenses 70,000 Cost of Goods Sold 1,200,000 Depreciation Expense overstated in 2015 105,000 Dividend revenue 30,000 Dividends Declared 120,000 Effect on prior years of Change in Accounting Principle (credit) 220,000 Gain from sale of land in discontinued component...
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue...
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $156,283 Sales Returns and Allowances 2,051 Sales Discounts 4,185 Interest Revenue 420 Merchandise Inventory, January 1, 20-- 28,849 Purchases 111,557 Purchases Returns and Allowances 5,252 Purchases Discounts 2,686 Freight-In 887 Merchandise Inventory, December 31, 20-- 33,013 Wages Expense 27,582 Supplies Expense 760 Phone Expense...
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue...
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $156,876 Sales Returns and Allowances 2,344 Sales Discounts 4,155 Interest Revenue 419 Merchandise Inventory, January 1, 20-- 27,769 Purchases 112,094 Purchases Returns and Allowances 5,517 Purchases Discounts 2,710 Freight-In 870 Merchandise Inventory, December 31, 20-- 33,028 Wages Expense 27,611 Supplies Expense 744 Phone Expense...
Headland Company is a multiproduct firm that uses the perpetual inventory system. Presented below is information...
Headland Company is a multiproduct firm that uses the perpetual inventory system. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost Jan. 1 Beginning inventory 960 $14 Feb. 4 Purchase 1,920 20 Feb. 20 Sale 2,400 36 Apr. 2 Purchase 2,880 25 May 4 Sale 2,112 39 Compute cost of goods sold under LIFO. Cost of goods sold $ Ending inventory $
Headland Company is a multiproduct firm that uses the perpetual inventory system. Presented below is information...
Headland Company is a multiproduct firm that uses the perpetual inventory system. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost Jan. 1 Beginning inventory 960 $14 Feb. 4 Purchase 1,920 20 Feb. 20 Sale 2,400 36 Apr. 2 Purchase 2,880 25 May 4 Sale 2,112 39 Compute cost of goods sold under moving-average. Cost of goods sold $ Ending inventory $
Presented below is information related to Donaldson Corp., for the year 2020. Prepare an income statement...
Presented below is information related to Donaldson Corp., for the year 2020. Prepare an income statement and answer the question below and other questions requiring the use of this income statement. Net sales $1,820,000 Cost of goods sold 1,240,000 Selling expenses 86,000 Administrative expenses 74,000 Dividend revenue 25,000 Interest revenue 20,000 Interest expense 50,000 Write-off of goodwill due to impairment 40,000 Depreciation expense omitted in 2018 105,000 Dividends declared 12,000 Effect on prior year’s of change in accounting principle (credit)...
Assigned HW2: Income Statement Presented below is information related to Festival Co. for the calendar year...
Assigned HW2: Income Statement Presented below is information related to Festival Co. for the calendar year of 2017. Cost of goods sold- $1,575,000 Loss on disposal of discontinued electronic division (pre-tax) - $330,000 Dividends-Preferred stock- $275,000 Loss resulting from changes in accounting principles: FIFO to AC inventory assumption (pre-tax) - $32,000 Interest revenue- $690,000 Selling expenses 495,000 Net Sales- $3,850,000 Income from operations of discontinued electronic division (pre-tax) - $280,000 Administrative expenses- $375,000 Retained earnings, 1/1 (Jan 1) - $630,000...
Explain how each of the following is presented in (1) a multiple-step income statement and (2)...
Explain how each of the following is presented in (1) a multiple-step income statement and (2) a statement of cash flows a.Sale of marketable securities at a loss b. adjusting entry to create (or increase) the allowance for doubtful accounts c. Entry to write off an uncollectable account against the allowance, d. Adjusting entry to increase the balance in Marketable securities account to a higher market value (assume these investments are classified as available for sale securities)
Multiple-step income statement. Shown below is revenue, expense, gain, and loss information for AAA Corporation for...
Multiple-step income statement. Shown below is revenue, expense, gain, and loss information for AAA Corporation for 2019. Administrative expense 215,000 Cost of merchandise sold 408,500 Interest expense 13,000 Dividend revenue 19,500 Pre-tax loss on disposal of a component of the business 30,000 Loss from write-down of inventory 70,000 Sales revenue 945,000 Selling expenses 145,000 Instructions Prepare a multiple-step income statement, in proper form for 2019 for AAA Corporation that is presented in accordance with generally accepted accounting principles (including format...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT