Presented below is information related to 2020 for Sheridan Company. Retained earnings, December 31, 2019 Sales revenue Selling and administrative expenses Discontinued operations loss (pre-tax) Cash dividends declared on common stock Cost of goods sold Gain discovered in 2020, from error on depreciation charge in 2018 (pre-tax) Other revenue Other expenses $667,000 1,517,000 231,000 283,000 33,600 897,000 510,000 116,000 104,000 Prepare in good form a multiple-step income statement for the year 2020. Assume a 30% tax rate and that 80,000 shares of comm stock were outstanding during the year. (Round per share values to 2 decimal places, e.g. $1.58.)
Q: Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a…
A: As per the given information: Original investment : Xavier - $ 50,000…
Q: I need examples
A: Skimming fraud can be possible in business or personal basis. It is white collor crime. Generally It…
Q: 5. Prepare a Statement of Financial Position using the ff. accounts (one in account form and one in…
A: Financial Statements of The Company :— Financial statement of the Company Provide the Financial…
Q: Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,100 cases of Oktoberfest-style…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Christina bought a car that cost $18000. She put $4000 down and financed the rest at 3.8%/a…
A: Time value of money :— According to this concept, value of money in present day is greater than…
Q: 36. SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT…
A: Expanded withholding tax on the purchases of goods=Purchase of goods by TWA×EWT rate
Q: term is 30 days. b. A sale invoice from Papier Paper Company dated December 15, 2024 for P5,465. The…
A: Statement of Financial Position The balance sheet is often known as a statement of financial…
Q: As of December 31 of the current year, Armani Company's records show the following. $ 10,500 9,500…
A: Statement of retained earnings records the net income for the year and dividend and give us the…
Q: The functions of and documents generated by which of the below departments determine when a…
A: Lets understand the basics. In organization, there are various department which are inter connected…
Q: Cash Flow Statement, Reported in Thousands Period Ending Net Income OPERATING ACTIVITIES, CASH FLOWS…
A: Answer:- Financial statement meaning:- Financial statements are documents that describe a company's…
Q: Monster Inc. purchased a machine for $100,000 and depreciated it on a straight-line basis over a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Nielson Corporation has three employees. Each employee is paid overtime at time and one-half…
A: Payroll Register A payroll register is a tool used to keep track of each employee's wage information…
Q: Consider the following partially completed schedules of cost of goods manufactured. Compute the…
A: Total manufacturing cost incurred during the period = Direct material used + Direct labour+…
Q: ACC 202 Milestone One: Operational Costs Data Appendix You plan to open a small business for…
A: The volume of product produced determines the variation in variable expenses. Raw materials, labour,…
Q: The following table shows the effects of transactions through 5 on the assets, liabilities, and…
A: 1. The cash balance decreased by $4,500 and the land balance increased by $4,500. This indicates…
Q: In a manufacturing company of bicycles, the management wants to know the (1)Total Direct Costs and…
A: Direct cost is the cost which is directly incurred on the production of the goods whereas indirect…
Q: Provide a critique of the accounting policy for inventory included in the financial statement in…
A: The accounting standard prescribes the accounting treatment for inventories and sets the guidelines…
Q: Financial Statements of a Manufacturing Firm The following events took place for Sorensen…
A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…
Q: ment Accounting Required 21ries to a. Prepare journal entries to record the transactions. b. Prepare…
A: Total Manufacturing Cost :— It is direct material used plus direct labour plus applied manufacturing…
Q: nt is true or false. Tax related fraud is a criminal offence in South Africa. Therefore, it can be…
A: Tax refers to the mandatory charge imposed by the authoritative government over the income gained by…
Q: 21. For share appreciation rights, S1. the liability is remeasured at the end of each reporting…
A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…
Q: The management of XYZ Corporation has asked you in the preparation of some key reports for the month…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: P company acquired 80 % of W company for 50,000 JD . Equity of W is : common shares 80,000 JD ,…
A: There are three different question asked by you so kindly resubmit the remaining two question to get…
Q: N Required information [The following information applies to the questions displayed below.] On…
A: Net income = Total revenue - Total expenses Total expenses =Rent Expense + Salaries expense +…
Q: operations for Delivery Service, the business had the ff. accounts: Accounts Receivable,Php 1200…
A: Introduction:- A current assets is an asset, which are expected to be consumed with in one year.…
Q: Which of the following audit procedures is least effective for detecting unrecorded long-term debt…
A: Lets understand the basics. Management needs to perform an audit procedure in order to express an…
Q: Question 5 Zycron Ltd. Is a computer games manufacturer. It currently has two games on the market:…
A: Break even is the point at which the business is neither in losses nor earning profits. At this…
Q: 23. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: The following is an accounts receivable ageing schedule for Chin Ltd. Lee Lu Sing Wong Others…
A: Bad Debt Expense :— It is the estimated bad debt for the year. It is calculated as follows :— Bad…
Q: Bank reconciliation and entries The following information was…
A: 1.
Q: Geek plc trades in the children's toys sector. During the year it acquired 100% of Gifted Ltd, a toy…
A: The parent's assets are displayed in the consolidated statement of financial position, along with…
Q: 2. Identify and discuss 2 external users of accounting information and their information needs.
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Total raw materials available for ise Less: Raw materials inventory (12/31) Direct materials used…
A: Lets understand the basics. Cost of goods manufactured schedule is a schedule which shows how much…
Q: 1. Quiz Jadara Inc. makes travel bags that sell for $56 each. For the coming year, management…
A: Break Even Point :— Break Even Point is the Volume of production or sales where there is no Profit…
Q: Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The…
A: Introduction:- The following basic information as follows under:- Salary for Seth :…
Q: Your company bought a production line 5 years ago for $75,000. At that time, it was estimated to…
A: Replacement analysis refers to the method which helps the company in deciding whether the present…
Q: Suppose that the $ for $ spot exchange rate is 2:1, the 90day forward exchange rate is F = 2:156,…
A: Arbitrage opportunities refers to the strategy of the investment under which the investor buys as…
Q: e following transactions were completed by the company. The owner invested $17,400 cash in the…
A: Transactions recorded in an accounting equation format will help to analyse the transactions…
Q: On October 1, 2021, Santana Rey launched a computer services company, Business Solutions, that is…
A: The worksheet based on the basic accounting equation i.e., assets are equal to sum of liabilities…
Q: If Baldwin issued 1000 shares of common stock at last year's end price $46.98 , the effect on the…
A: Common stock — Common stock reffers to equity share of the Company. it represents the Ownership in…
Q: Question 8.4 Pepper Potts Pottery manufactures ceramic products. All direct materials are…
A: Given Information Direct Material Cost = $155,000 Total No. of units Introduced = 2,500 tons…
Q: T2 Manufacturing Ltd. manufactures electrical parts. Data for two of the company's customers is as…
A: preparation of comparative income statement are as follows
Q: The company eHarbour is expanding and needs to hire new employees for new software development in…
A: A paralegal assistant is appointed by the legal department to perform duties such as investing the…
Q: The following condensed information is reported by Sporting Collectibles. Income Statement…
A: Profitability ratios are financial metrics used to assess a business ability to generate earnings…
Q: Jin Xiang is single and lives at 2468 North Lake Road in Deerwood, MN 56444. Her SSN is 412-34-5670.…
A: A tax is a governmental organization's mandatory financial obligation or another form of levy…
Q: Identify whether each of the following events in this scenario occurs in the factor market or the…
A: Given in the question: Frances earns $825 per week because Frances is working as a programmer for PC…
Q: ject a project. Your should refer to all four investment appraisal methods.
A: Capital budgeting is used to decide whether a project should be accepted or rejected. Capital…
Q: [Choose ] V [Choose ] Merchandise Inventory Pre-paid Insurance Accumulated Depreciation Supplies…
A: The journal entries are prepared as Debit one account and credit other account. The adjustment…
Q: Calculate the (1) Total Manufacturing Overhead, (2) Selling Expenses and (3) Administrative Expenses…
A: Manufacturing overheads are those costs which are indirectly involved in the process of production.…
Q: A sole trader had opening capital of £25,000 and closing capital of £7,500. During the year the…
A: Owner's capital :— It is the net worth of the owner. It is amount invested in business by owner. It…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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).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. 670,000Using the following Company W information, prepare a Retained Earnings Statement. Retained earnings balance January 1, 2019, $43,500 Net income for year 2019, $55,289 Dividends declared and paid for year 2019, $18,000
- Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________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.
- Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. In addition, Reinhardt paid of dividends during 2019. On December 31, 2019, Reinhardt prepared closing entries. The net effect of the closing entries on retained earnings was a(n): a. decrease of $4,000. b. increase of $35,000. c. increase of $39,000. d. decrease of $87,000.Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance: Additional data: 1. Seven thousand shares 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 2019 multiple-step income statement. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 statement of comprehensive income.
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.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%?Comprehensive: Income Statement and Retained Earnings Milwaukee Manufacturing Company presents the following partial list of account balances, after adjustments, as of December 31, 2019: The following information is also available but is not reflected in the preceding accounts: a. The company sold Division E (a major component of the company) on August 2, 2019. During 2019, Division E had incurred a pretax loss from operations of 16,000. However, because the acquiring company could vertically integrate Division E into its facilities, Milwaukee Manufacturing was able to recognize a 42,000 pretax gain on the sale. b. On January 2, 2019, without warning, a foreign country expropriated a factory of Milwaukee Manufacturing which had been operating in that country. As a result of that expropriation, the company has incurred a pretax loss of 30,000. c. The common stock was outstanding for the entire year. A cash dividend of 1.20 per share was declared and paid in 2019. d. The 2019 income tax expense totals 31,050 and consists of the following: Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for selling expenses and for general and administrative expenses (include depreciation expense where applicable in these schedules). 2. Prepare 2019 multiple-step income statement for Milwaukee Manufacturing. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Milwaukee Manufacturings return on common equity for 2019 if its average shareholders equity during 2019 was 500,000? What is your evaluation of this return on common equity if its target for 2019 was 15%? 5. Next Level Discuss how Milwaukee Manufacturings income statement in Requirement 2 might be different if it used IFRS.