Question
In: Accounting
The Huff Company presents the following partial list of account balances taken from its December 31,...
The Huff Company presents the following partial list of account balances taken from its December 31, 2016 adjusted trial balance:
| Sales (net) | $125000 | Operating expenses | $26100 | ||
| Interest expense | 4600 | Common stock, $5 par | 11000 | ||
| Cost of goods sold | 59000 | Retained earnings, 1/1/2016 | 43000 |
The following information is also available for 2016 and is not reflected in the preceding accounts:
The common stock has been outstanding all year. A cash dividend of $1.16 per share was declared and paid.
Land was sold at a pretax gain of $6700.
Division X (a major component of the company) was sold at a pretax gain of $4620. It had incurred a $9460 pretax operating loss during 2016.
A tornado, which is an unusual event in the area, caused a $5330 pretax loss.
The income tax rate on all items of income is 30%.
The average shareholders’ equity is $90000.
Required:
1. Prepare a 2016 multiple-step income statement for Huff. Round earnings per share computations to two decimal places.
2. Prepare a 2016 retained earnings statement.
3. Compute the 2016 return on common equity. Round to one decimal place.
Solutions
ekkarill92 answered 11 months agoRelated Solutions
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances...
Income Statement and Retained Earnings
The Huff Company presents the following partial list of account
balances taken from its December 31, 2019 adjusted trial
balance:
Sales (net)
$123,000
Operating expenses
$20,600
Interest expense
4,300
Common stock, $5 par
5,500
Cost of goods sold
51,000
Retained earnings, 1/1/2019
41,700
The following information is also available for 2019 and is not
reflected in the preceding accounts:
The common stock has been outstanding all year. A cash dividend
of $1.3 per share was...
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances...
Income Statement and Retained Earnings
The Huff Company presents the following partial list of account
balances taken from its December 31, 2016 adjusted trial
balance:
Sales (net)
$122000
Operating expenses
$22500
Interest expense
3200
Common stock, $5 par
22000
Cost of goods sold
70000
Retained earnings, 1/1/2016
45500
The following information is also available for 2016 and is not
reflected in the preceding accounts:
The common stock has been outstanding all year. A cash dividend
of $1.32 per share was...
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances...
Income Statement and Retained Earnings
The Huff Company presents the following partial list of account
balances taken from its December 31, 2016 adjusted trial
balance:
Sales (net)
$124,000
Operating expenses
$20,000
Interest expense
3,100
Common stock, $5 par
16,500
Cost of goods sold
56,000
Retained earnings, 1/1/2016
44,500
The following information is also available for 2016 and is not
reflected in the preceding accounts:
The common stock has been outstanding all year. A cash dividend
of $1.46 per share was...
The following are partial income statement account balances taken from the December 31, 2016, year-end trial...
The following are partial income statement account balances
taken from the December 31, 2016, year-end trial balance of White
and Sons, Inc.: restructuring costs, $420,000; interest revenue,
$52,000; before-tax loss on discontinued operations, $520,000; and
loss on sale of investments, $62,000. Income tax expense has not
yet been recorded. The income tax rate is 40%.
Prepare the lower portion of the 2016 income statement beginning
with $910,000 income from continuing operations before income
taxes. Include appropriate basic EPS disclosures. The...
The following account balances are taken from the books of Country Club on 31 December 2017....
The following account balances are taken from the books of
Country Club on 31 December 2017. Revenues and expenses are for the
year ended 31 December 2017. The retained profits balance is as at
1 January 2017.
Account Value ($)
Accounts Receivable 29826
Accounts Payable 25242
Promotional Expense 54245
Cash 5420.0
Food Sales 15215
Cost of food sold 13080
Dividend payments 8138
Electricity Expense 6385
Furniture and fittings 42,500
Inventory 22,500
Land and buildings 75,000
Bank loan payable 43,750
Equipment...
The following was taken from the books of Coyote Company as of December 31, 2017. account...
The following was taken from the books of Coyote Company as of
December 31, 2017.
account
debit
credit
cash
$30,000
accounts receivable
40,000
allowance for doubtful accounts
2,000
S-T Notes receivable
19,000
inventory, January 1, 2017
50,000
prepaid insurance
20,000
furniture and equipment
100,000
accumulated depreciation of F&E
40,000
patents
110,000
accounts payable
12,000
bonds payable
20,000
L-T notes payable
10,000
common stock
40,000
retained earnings
140,000
sales
360,000
purchase
149,000
salary expense
50,000
rent expense
56,000
totals
624,000
624,000...
The following account balances were taken from ABC Company’s unadjusted trial balance at December 31, 2020:...
The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:
Accounts Payable ............ $56,000
Accounts Receivable ......... $42,000
Cash ........................ $11,000
Common Stock ................ $63,000
Cost of Goods Sold .......... $52,000
Income Tax Expense .......... $12,000
Insurance Expense ........... $21,000
Inventory ................... $70,000
Land ........................ $68,000
Mortgage Payable ............ $49,000
Patent ...................... $31,000
Prepaid Insurance ........... $17,000
Rental Revenue .............. $46,000
Retained Earnings ........... $72,000 (at January 1, 2020)
Sales Revenue ............... $95,000
Supplies...
The following account balances were taken from ABC Company’s unadjusted trial balance at December 31, 2020:...
The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:
Accounts Payable ............ $56,000
Accounts Receivable ......... $42,000
Cash ........................ $11,000
Common Stock ................ $63,000
Cost of Goods Sold .......... $52,000
Income Tax Expense .......... $12,000
Insurance Expense ........... $21,000
Inventory ................... $70,000
Land ........................ $68,000
Mortgage Payable ............ $49,000
Patent ...................... $31,000
Prepaid Insurance ........... $17,000
Rental Revenue .............. $46,000
Retained Earnings ........... $72,000 (at January 1, 2020)
Sales Revenue ............... $95,000
Supplies...
The following account balances were taken from ABC Company’s unadjusted trial balance at December 31, 2020:...
The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:
Accounts Payable ............ $56,000
Accounts Receivable ......... $42,000
Cash ........................ $11,000
Common Stock ................ $63,000
Cost of Goods Sold .......... $52,000
Income Tax Expense .......... $12,000
Insurance Expense ........... $21,000
Inventory ................... $70,000
Land ........................ $68,000
Mortgage Payable ............ $49,000
Patent ...................... $31,000
Prepaid Insurance ........... $17,000
Rental Revenue .............. $46,000
Retained Earnings ........... $72,000 (at January 1, 2020)
Sales Revenue ............... $95,000
Supplies...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31,...
The following are selected account balances from Penske Company
and Stanza Corporation as of December 31, 2021:
Penske
Stanza
Revenues
$
(818,000
)
$
(756,000
)
Cost of goods sold
291,300
189,000
Depreciation expense
208,000
272,000
Investment income
Not given
0
Dividends declared
80,000
60,000
Retained earnings, 1/1/21
(750,000
)
(360,000
)
Current assets
414,000
588,000
Copyrights
1,060,000
550,500
Royalty agreements
662,000
1,138,000
Investment in Stanza
Not given
0
Liabilities
(502,000
)
(1,401,500
)
Common stock
(600,000
)
($20 par)...
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