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) $124,000 Operating expenses $26,300 Interest expense 4,600 Common stock, $5 par 16,500 Cost of goods sold 53,000 Retained earnings, 1/1/2019 41,700 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 $1.04 per share was declared and paid. 2. Land was sold at a pretax gain of $5,900. 3. Division X (a major component of the company) was sold at a pretax gain of $4,670. It had incurred a $9,470 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,310 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $89,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places.

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) $124,000 Operating expenses $26,300 Interest expense 4,600 Common stock, $5 par 16,500 Cost of goods sold 53,000 Retained earnings, 1/1/2019 41,700 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 $1.04 per share was declared and paid. 2. Land was sold at a pretax gain of $5,900. 3. Division X (a major component of the company) was sold at a pretax gain of $4,670. It had incurred a $9,470 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,310 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $89,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places.

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 17E: Income Statement and Retained Earnings Huff Company presents the following items derived from its...

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Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
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).
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