Sales revenue $1,250,000 Selling expenses $128,000 COGS $700,000 Dividend revenue $8,000 Interest expense $17,000 Administrative expense $170,000 Dividends declared $24,000 The amount of income taxes applicable to income was $72,900 Prepare a multiple step income statement below in good form.
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Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2018 an analysis of the accounts and discussions wit company officials revealed the following information:
Sales revenue $1,250,000
Selling expenses $128,000
COGS $700,000
Dividend revenue $8,000
Interest expense $17,000
Administrative expense $170,000
Dividends declared $24,000
The amount of income taxes applicable to income was $72,900
Prepare a multiple step income statement below in good form.
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- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. On December 31, 2020, an analysis of the accounts and discussions with company officials revealed the following information: Sales Revenues 2,100,000 Purchases 1,284,000 Purchase discounts 36,000 Cash 120,000 Loss on discontinued operations (net of tax) 56,000 Selling expenses 256,000 Share capital 400,000 Accounts receivable 180,000 Land 740,000 Accumulated depreciation 360,000 Dividend revenue 16,000 Inventory, January 1, 2020 304,000 Inventory, December 31, 2020 250,000 Unearned service revenue 8,800 Accrued interest payable 2,000 Dividends declared 58,000 Patents 200,000 Retained earnings, January 1, 2020 580,000 Interest expense 34,000 General and administrative expenses 300,000 Accounts payable 120,000 Allowance for doubtful accounts…
- Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales Revenues 2,100,000 Purchases 1,284,000 Purchase discounts 36,000 Cash 120,000 Loss on discontinued operations (net of tax) Selling expenses Share capital 56,000 256,000 400,000 Accounts receivable 180,000 Land 740,000 Accumulated depreciation 360,000 Dividend revenue 16,000 Inventory, January 1, 2020 Inventory, December 31, 2020 Unearned service revenue 304,000 250,000 8,800 Accrued interest payable 2,000 Dividends declared 58,000 Patents 200,000 Retained earnings, January 1, 2020 Interest expense General and administrative expenses Accounts payable 580,000 34,000 300,000 120,000 Allowance for doubtful accounts 10,000 Notes payable (maturity 7/1/25) Machinery and equipment Materials and supplies 400,000 900,000 80,000Armstrong Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2018 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,250,000 Discontinued operations loss (net of tax) 63,000 Selling expenses 128,000 Common stock 200,000 Cost of goods sold 700,000 Dividend revenue 8,000 Retained earnings, January 1, 2018 270,000 Interest expense 17,000 Administrative expenses 170,000 Tax Expense 72,900 Dividends declared 24,000 (a) Per the table above, prepare a multiple-step income statement using this excel template Exam Income Statement Problem Template - Uploaded.xlsx (b) Based on the results of the income statement above, prepare a retained earnings statement. Template is included in the same excel document.f) On January 1, 2022, Fall Company leased some equipment for $250,000. They made the first of five payments of $57,976 on that day. The bookkeeper incorrectly recorded the transaction as follows on January 1: $57,976 Lease expense Cash $57,976 g) Accrue annual interest expense on the lease in (f) at 8%. h) Amortize the lease in (f) over five years.
- Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2010 an analysis of the accounts and discussions with company officials revealed the following information: Sales Purchase discounts Purchases Earthquake loss (net of tax) (extraordinary item) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation Dividend revenue Inventory, January 1, 2010 Inventory, December 31, 2010 Unearned service revenue Accrued interest payable Land Patents Retained earnings, January 1, 2010 Interest expense General and administrative expenses Dividends declared Allowance for doubtful accounts Notes payable (maturity 7/1/13) Machinery and equipment Materials and supplies Accounts payable Required: $1,100,000 18,000 642,000 The amount of income taxes applicable to ordinary income was $48,600, excluding the tax effect of the earthquake loss which amounted to $18,000. (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings…Fall Corporation's capital structure consists of 500,000 authorized shares of common stock, of which 100,000 have been issued and are still outstanding. At December 31, 2022, an analysis of the accounts and discussions with company officials revealed the following information: Accounts payable...... Accounts receivable (trade accounts). Accumulated depreciation..... Accumulated other comprehensive income. Allowance for uncollectible accounts. Amortization expense.. Cash....... Common stock ($1 par value) Cost of goods sold Deferred revenue.. Depreciation expense. Dividend revenue.. Fair value adjustment (trading securities - debit balance). Gain on investments (Unrealized, NI).... General and administrative expenses. Interest expense... Interest payable..... Inventory, December 31, 2022. Investments in trading securities (cost)... Land held for future plant site.... 4% Notes payable (maturity 7/1/26 - $40,000 due July 1, 2023)... Paid in capital in excess of par.. Patents...... Pension…BE4-2 Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2020. Expenses for 2020 were cost of goods sold $1,450,000; administrative expenses $212,000; selling expenses $280,000; and interest expense $45,000. Brisky's tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 70,000 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020.
