1. Closing entries Nashville Nets Inc. Adjusted Trial Balance De cember 31, 2018 Debit Credit Common Stock, Par $ 0.10 A PIC (Additional Paid in Capital in Excess of Par) 1,000,000 9,000,000 Retained Earnings 25,000,000 DNidends Pald 2,400,000 Sales 105,350,000 Sales Discounts 1,250,000 Costof Goods Sold (COas) 41,950,000 Selling Expenses 14,150,000 Adm inistrative Expenses 3,340,000 Rent Revenue 120,000 Loss on sale of equipment 50,000 Income Tax Expense 21.580,000 Items to incorporate into your instruction manual for closing entries (including the partial trial balance provided above) are as follows 1 • How does the accountant know that the Retained Earnings balance of $25 million is the balance as of the beginning of the year? • Using the balances provided above, how could a quick addition/subtraction exercise on your calculator provide net income? • How could the accountant calculate ending retained earnings without preparing the retained earnings statement? • Explain the closing process utilizing the income summary account. Provide "T" accounts in your explanation along with the journal entries.

1. Closing entries Nashville Nets Inc. Adjusted Trial Balance De cember 31, 2018 Debit Credit Common Stock, Par $ 0.10 A PIC (Additional Paid in Capital in Excess of Par) 1,000,000 9,000,000 Retained Earnings 25,000,000 DNidends Pald 2,400,000 Sales 105,350,000 Sales Discounts 1,250,000 Costof Goods Sold (COas) 41,950,000 Selling Expenses 14,150,000 Adm inistrative Expenses 3,340,000 Rent Revenue 120,000 Loss on sale of equipment 50,000 Income Tax Expense 21.580,000 Items to incorporate into your instruction manual for closing entries (including the partial trial balance provided above) are as follows 1 • How does the accountant know that the Retained Earnings balance of $25 million is the balance as of the beginning of the year? • Using the balances provided above, how could a quick addition/subtraction exercise on your calculator provide net income? • How could the accountant calculate ending retained earnings without preparing the retained earnings statement? • Explain the closing process utilizing the income summary account. Provide "T" accounts in your explanation along with the journal entries.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 17P: Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the...

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Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).
Multiple-Step and Single-Step In coin Statements The following items were derived from Gold Companys December 31 adjusted trial balance: Additional data: 1. Screen thousand share of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a multiple-st income statement. 2. Prepare a single step income statement. 3. Next Level Discuss how Gold Companys income statement in Requirement I might be different if it used IFRS
Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the account balances, after adjustments, of Silvoso Company on December 31, 2019: The following information is also available: 1. The company declared and paid a 0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019, ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of 12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a major component of the company) had incurred a pretax operating loss of 8,700. Division R was sold at a pretax gain of 10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals 4,230. The breakdown is as follows: 6. The company had average shareholders equity of 150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. 2. Prepare a 2019 multiple-step income statement for Silvoso. Include any related note to the financial statements. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Silvosos return on common equity for 2019? What is your evaluation of Silvosos return on common equity if last year it was 10%?
The trial balance of Titan Company on December 31, 2018 includes the following accounts: Share capital P1,500,000Share premium 500,000Treasury shares, at cost 200,000Retained earnings unappropriated 600,000Retained earnings appropriated 300,000 What amount should be reported as total shareholders’ equity?a. P2,700,000b. P3,100,000c. P2,600,000d. P2,300,000
The following trial balance has been extracted from the books of Paul Co. as at 31 December2018$ $Equity share capital ( $1) 6,000Retained earnings at 1 January 2018 6,835Revenue 76,980Salary & wages 7,400Inventory at 1 January 2018 4,930Purchases 40,760Distribution cost 6,130Administrative expenses 6,790Loan interest 1,200Investment income 1,250Tax 1,200Receivables and payables 10,290 3,360Bank 4,125Motor vehicles-cost 6,000Buildings- cost 13,000Motor vehicles-accumulated depreciation 1 January 2018 2,000Buildings- accumulated depreciation 1 January 2018 3,400Debenture ( 2021) 2,000101,825 101,825 Additional information:1. Inventory at the end of the year was valued at $5,0002. Paul made no additions or disposal of tangible non-current assets in the year. Itsdepreciation policy is as follows:Motor vehicle – 20% reducing balanceBuildings- 25 years’ straight lineThe depreciation expense for the year is charged to cost of sales3. Salary and wages are to apportioned equally across…
Balance off the accounts and extract a trial balance for sole trader Airman Co. as at 30 September2020:DR CR£ £Capital 306,070Drawings 26,500Cash at bank 20,000Cash in hand 8,500Accounts receivable (Debtors) 70,000Accounts payable (Creditors) 16,000Inventory (Stock): 30 September 2019 36,000Van 16,000Fixtures and Fittings 32,000Sales 80,000Purchases 150,000Return inwards (Sales Returns) 2,000Carriage inwards 720Returns outwards (Purchase Returns) 600Carriage outwards 400Motor expenses 1,200Rent 5,000Telephone charges 620Wages and salaries 32,000Insurance 830Office expenses 600Sundry expenses 300402,670 402,670Inventory as at 30 September 2020 was £120,000.Required a. Draft an Income Statement for Airman Co. for the year ending 30th September 2020 b. The records show that the Airman Co. has been profitable during 10 years since 2009. Due to COVID-19 outbreak, explain the possible impact of COVID-19 on company Income statement items.
Extract of Balance sheet items as at 31 December 2019 Net loss (7250) Dividends income 1,000 Opening stock 27800 Accounts payable 18000 Accounts receivable 123000 Prepaid expense 25100 Rental revenue 5200 Drawings 1450 Interest Income 8540 Capital 137900 Retained earnings 22700 Calculate Owners Equity Select one: a. None of these b. 160600 OMR c. 153350 OMR d. 151900 OMR
Below is Company A's balance sheet at the end of 2022. Assume that Company A issues 25 shares of common stock and 1 share of preferred stock. What is the earnings per share of Company A? 2022 AmountNet sales$1,000.0Variable operating costs 770.0Fixed operating costs 50.0Depreciation and amortization 50.0Interest30.0Taxes20.0Preferred dividends5.0Common dividends25.0 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Closet Organizers Inc. sells closet organizing systems. Selected accounts and their balancesas of September 30, the end of the current year are: Common Stock, $42 par 12,810,000Paid-in Capital from Sale of Treasury Stock-Common 330,000Paid-in Capital in Excess of Par - Common Stock 453,000Paid-in Capital in Excess of Par - Preferred Stock 156,000Preferred 2% stock, $100 par 520,000Retained Earnings 64,358,000Treasury Stock-Common 1,006,250 Prepare the Stockholder's Equity section of the balance sheet as of September 30, the end ofthe current year using Method 1 of Exhibit 8. Preferred stock has sixty thousand shares authorizedand common stock has four hundred thousand shares authorized. There are twenty-fivethousand shares of common stock held as treasury stock.
Bruno Corporation's post-closing trial balance at December 31, 2020, is shown as follows. Bruno CorporationPost-Closing Trial BalanceDecember 31, 2020 00 Dr. 0000 Cr. Accounts payable 00 $ 310,000 Accounts receivable $ 480,000 00 Accumulated depreciation—buildings 00 185,000 Additional paid-in capital in excess of par—common 00 1,300,000 00From treasury stock 00 160,000 Allowance for doubtful accounts 00 30,000 Bonds payable 00 300,000 Buildings 1,450,000 00 Cash 190,000 00 Common stock ($1 par) 00 200,000 Dividends payable (preferred stock—cash) 00 4,000 Inventory 560,000 00 Land 400,000 00 Preferred stock ($50 par) 00 500,000 Prepaid expenses 40,000 00 Retained earnings 00 301,000 Treasury stock (common at cost) 00.170,000 00000000. 00Totals $3,290,000 $3,290,000 At December 31, 2020, Bruno had the following number of common and preferred shares. 00 0000 Common 0000 Preferred Authorized…
The following is a partial trial balance for the Green Star Corporation as of December 31, 2018:Account Title Debits CreditsSales revenue 1,300,000Interest revenue 30,000Gain on sale of investments 50,000Cost of goods sold 720,000Selling expenses 160,000General and administrative expenses 75,000Interest expense 40,000Income tax expense 130,000100,000 shares of common stock were outstanding throughout 2018.Required:1. Prepare a single-step income statement for 2018, including EPS disclosures.2. Prepare a multiple-step income statement for 2018, including EPS disclosures.
1. From the following balances taken from the books Shane Ltd. for the year ending March 31, 2022, calculate the gross profit.(₹)Closing Stock2,50,000Net sales during the year40,00,000Net purchases during the year15,00,000Opening stock15,00,000Direct expenses80,000