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5. The following pretax amounts are taken from the adjusted trial balance of Boo Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Description Balance, retained earnings, December 31, 2019 Sales revenue Bal. $ 270,000 1,800,000 630,000 Cost of goods sold Selling expenses Administrative expenses 216,000 204,000 Gain on sale of investments 60,000 25,500 Unrealized holding gain on debt investments, net of tax Prior period adjustment, understatement of depreciatfon from prior period (2019) Dividends declared and paid 120,000 96,000 Income tax rate 25% Number of common stock shares 20,000 Compute the following amounts for the year-end financial statements of 2020. Round the per share amount to two decimal places. e. Comprehensive Income (2020) f. Retained Earnings balance a. Gross profit (2020) b. Operating income (2020) (12/31/2020) c. Net income (2020) d. Earnings per share (2020)

5. The following pretax amounts are taken from the adjusted trial balance of Boo Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Description Balance, retained earnings, December 31, 2019 Sales revenue Bal. $ 270,000 1,800,000 630,000 Cost of goods sold Selling expenses Administrative expenses 216,000 204,000 Gain on sale of investments 60,000 25,500 Unrealized holding gain on debt investments, net of tax Prior period adjustment, understatement of depreciatfon from prior period (2019) Dividends declared and paid 120,000 96,000 Income tax rate 25% Number of common stock shares 20,000 Compute the following amounts for the year-end financial statements of 2020. Round the per share amount to two decimal places. e. Comprehensive Income (2020) f. Retained Earnings balance a. Gross profit (2020) b. Operating income (2020) (12/31/2020) c. Net income (2020) d. Earnings per share (2020)

Intermediate Accounting: Reporting And Analysis
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
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5. The following pretax amounts are taken from the adjusted trial balance of Boo Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Description Balance, retained earnings, December 31, 2019 Sales revenue Bal. $ 270,000 1,800,000 Cost of goods sold Selling expenses Administrative expenses 630,000 216,000 204,000 Gain on sale of investments 60,000 Unrealized holding gain on debt investments, net of tax Prior period adjustment, understatement of depreciation from prior period (2019) Dividends declared and paid 25,500 120,000 96,000 Income tax rate 25% Number of common stock shares 20,000 Compute the following amounts for the year-end financial statements of 2020. Round the per share amount to two decimal places. e. Comprehensive Income (2020) f. Retained Earnings balance a. Gross profit (2020) b. Operating income (2020) (12/31/2020) c. Net income (2020) d. Earnings per share (2020)
Transcribed Image Text:5. The following pretax amounts are taken from the adjusted trial balance of Boo Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Description Balance, retained earnings, December 31, 2019 Sales revenue Bal. $ 270,000 1,800,000 Cost of goods sold Selling expenses Administrative expenses 630,000 216,000 204,000 Gain on sale of investments 60,000 Unrealized holding gain on debt investments, net of tax Prior period adjustment, understatement of depreciation from prior period (2019) Dividends declared and paid 25,500 120,000 96,000 Income tax rate 25% Number of common stock shares 20,000 Compute the following amounts for the year-end financial statements of 2020. Round the per share amount to two decimal places. e. Comprehensive Income (2020) f. Retained Earnings balance a. Gross profit (2020) b. Operating income (2020) (12/31/2020) c. Net income (2020) d. Earnings per share (2020)
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