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In: Accounting

Presented below is information that relates to Halifax Limited for 2020: ​ ​Accounts Payable ​​49,000 ​Accounts...

Presented below is information that relates to Halifax Limited for 2020:
​
​Accounts Payable ​​49,000
​Accounts Receivable ​​78,000
​Bond Payable​​600,000
​Cash dividends declared on common shares​​34,000​
​Collections of credit sales​​$1,100,000
​Cost of goods sold​​1,100,000
​Equipment ​​85,000
​Gain from transactions in foreign currencies (pre-tax)​​220,000
​
​Inventory​​120,000​
​Loss on sale of equipment ​​350,000​
​Loss from early debt repayment ​​340,000
​Loss resulting from calculation error on depreciation charge in 2019​​460,000
​Other expenses​​120,000
​Other revenues​​180,000​
​Proceeds from issue of Halifax common shares​​60,000
​Retained earnings, January 1, 2020​​800,000
​Sales​​1,900,000
​Selling and administrative expenses​​290,000
​Unrealized Gain FV-NI ​ 20,000
​
Additional information to be included:
​On September 1, 2020, Halifax sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above.
Instructions
In good form, prepare a multiple-step income statement for 2020. Assume a 20% income tax rate and that 20,000 common shares were outstanding during the year. Include Earnings Per Share.

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ekkarill92 answered 1 year ago
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