Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020 $6.000,000 Pretax Income 2,000,000 Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a pretax increase in income by: Cash dividends declared During 2020. the company discovered that the 2019 depreciation expense were overstated by a net of tax am ount of: 330.000 40,000 225.000 70,000 Tax rate 30%%
Q: re the information of Talc Inc. for the year 2020 · Net assets, Jan.1, 2020- P1,000,000 ·…
A: Solution: Net assets are equal to equity of the company.
Q: Presented below is information related to Sheridan Corp. for the year 2020. The information is…
A: Income Statement - It is a financial statement which shows the company's income and expenses over a…
Q: 4. The following items are from the adjusted trial balance of GabAlec. on December 31, 2020, the end…
A: Multi-step income statement: It is the presentation of a normal income statement in a more detailed…
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Q: Pat Matthew Company reported the following pre-tax information for its current year, 2020: $40,000…
A: Loss from discontinuing operations, net of tax = Loss from discontinuing operations - Tax = $8,000 -…
Q: On January 1, 2020, Anderson Corporation had retained earnings of $400,000. During 2020, Anderson…
A: Ending retained earnings = Beginning retained earnings + Net income - Dividends
Q: The 2020 income statement of Blossom Corporation showed net income of $1,271,000, which included a…
A: Earnings per share (EPS) which states that how much money which company could make for each and…
Q: Vaughn Corporation had net sales of $2,413,000 and interest revenue of $34,000 during 2020. Expenses…
A: Definition of EPS: EPS stands for Earnings per share it is to be calculated Net income divided by…
Q: On December 31, 2020, the balance sheet of Legend Corporation shows a total equity of P1,260,000.…
A: Retained Earning at the end of the year = Current Retained Earnings + Profit/Loss – Dividends
Q: The following information pertains to BT21 Co. for the year. · Net assets, Jan.1, 2021-…
A: Solution: Profit (Loss) = Net asset on Dec 31, 2021 - Net asset Jan 1, 2021 + Dividend declared -…
Q: On January 1, 2020, Cave Corporation had retained earnings of $7,900,000. During 2020, Cave reported…
A: Retained earnings is the part of net income which is retained by the entity and not paid as…
Q: Presented below is X Corporation's selected data for 2020: Retained earnings January 1 .2020 Pretax…
A: Retained Earnings: Retained earnings are the accumulated net earnings or profits of a corporation…
Q: Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and…
A: Retained earning means the amount of profit that has not been distributed to shareholder as divided.…
Q: RED Corporation's account balances during 2021 showed the following changes, all increases: Assets…
A: Solution Concept Using accounting equation Change in assets =change in liabilities +…
Q: on january 1 2020 carla vista corporation had retained earnings of 549000 during the year carla…
A: Retained earnings refer to the accumulated portion of the profits of business that is not…
Q: Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for…
A: Earnings per share is the ratio between net income and the outstanding number of shares. EPS = Net…
Q: Nash Corporation had net sales of $2,401,300 and interest revenue of $36,200 during 2020. Expenses…
A: Under Multi-Step Income Statement, All the line items are required to be shown in the specific…
Q: Instructions Data taken from the accounting records of Sherri's Designs on December 31 are shown.…
A: The income statement can be prepared using various methods as single step income statement and multi…
Q: 5. The following pretax amounts are taken from the adjusted trial balance of Boo Inc. on December…
A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: Kingbird Corporation had net sales of $2,413,600 and interest revenue of $37,500 during 2020.…
A: An income statement is a part of a financial statement that is prepared to represent the performance…
Q: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020…
A: "Since you have posted multiple questions, we will solve the first question for you. To get the…
Q: &J Corporation has a year-end retained earnings balance of 210000 for 2020. The corporation paid…
A: The beginning balance of retained earnings can be back calculated with the help of net income and…
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A: Prepare retained earnings statement for Jason Woo Corporation for the year ended December 31, 2020.
Q: Presented below is information related to 2020 for Sheridan Company. Retained earnings, December 31,…
A:
Q: Presented below is information related to Bramble Corp. for the year 2020. Net sales $1,378,000…
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Q: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020…
A: Retained earnings:- Retained earnings are defined as the portion of the profits left with the firm…
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Q: The following information relates to Hardin Limited’s year-ended 31 December 2020: The statement…
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A: Retained earnings: These are the accumulated earnings of the company. These earnings were…
Q: Retained Eamings, January 1, 2020 $900,000 Net Income 88,200 Stock dividends declared 14,280 During…
A: Depreciation net of tax = depreciation x (1-tax rate) = $10000 x (1-0.30) = $7,000
Q: The following information relates to Hardin Limited's year-ended 31 December 2020: • The statement…
A: "Since you have asked multiple question we will solve the first question for you. If you want any…
Q: Computing Financial Statement Measures The following pretax amounts are taken from the adjusted…
A: Gross profit is the money a business makes after deducting the costs of producing and selling its…
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Q: Windsor Corporation had net sales of $2,404,900 and interest revenue of $38,100 during 2020.…
A: Windsor Corporation’s condensed multiple-step income statement is prepared as follows:
Q: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020…
A: Solution: Based on the data above, prior period adjustment (related to 2019 depreciation expense)…
Q: on january 1 2020 carla vista corporation had retained earnings of 549000 during the year carla…
A: RE stands for Retained Earnings which is defined as the left over amount from the net income of the…
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Q: Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for…
A: Earnings per share=Net income (loss)No. of common shares
Q: On December 31, 2020, the balance sheet of Legend Corporation shows a total equity of P1,260,000.…
A: Retained earning means amount of profit remain after all the adjustment of expense and various…
Q: Presented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020…
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Q: Presented below is X Corporation's selected data for 2020: Retained Eamings, January 1, 2020 Net…
A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…
Q: Bang Company reported a Retained Earnings balance of P150,000 on December 31, 2021. The following…
A: Depreciation expense net of tax = Depreciation expense x (1 - tax rate) = 25000 * (1-0.25) = P18,750
Q: Windsor Corporation had net sales of $2,404,900 and interest revenue of $38,100 during 2020.…
A: Equation: Gross profit = Net sales - Cost of goods sold
Q: Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and…
A: Lets understand the basics. Retained earning is a net income that is retained every year after…
Q: I need help with an income statement that I can't seem to get right.... Presented below is…
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Q: Nash Corporation had net sales of $2,416,400 and interest revenue of $33,800 during 2020. Expenses…
A: Single step Income Statement : In this format of income statement, the expenses are not…
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- Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.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).Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) 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.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. 670,000Profitability Ratios Katrina Corp. is a publicly traded company on a large stock exchange. Katrinas financial statement for 2019 and 2018 included the following data: Required: Calculate Katrinas earnings per share as it would be reported on the 2019 income statement.
- 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.Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
- In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because management believed that FIFO belter represented the flow of their inventory. Management prepared the following analysis showing the effect of this change: Frost reported net income of 2,500,000, 2,400,000, and 2,100,000 in 2018, 2019, and 2020, respectively. The tax rate is 21%. Required: 1. Prepare the journal entry necessary to record the change. 2. What amount of net income would Frost report in 2018, 2019, and 2020? 3. If Frosts employees received a bonus of 10% of income before deducting the bonus and income taxes in 2018 and 2019, what would be the effect on net income for 2018, 2019, and 2020?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.Rate of Change Analyses and Ratios Analyses The following are Cohen Companys comparative financial statements for 2020, 2019, and 2018: Additional information: Credit sales were 65% of net sales in 2019 and 60% in 2020. At the beginning of 2020, 400 shares of common stock were issued, the first sale of stock in several years. Cohen is concerned. Although it increased the dividends paid per share by 5% in 2020 and its 2020 net income is higher than 2019 net income, the market price of its common stock dropped from 22 per share at the beginning of 2020 to 21 per share at year-end. Required: 1. For 2019 and 2020, prepare rate of change analyses for the income statements and balance sheets of Cohen using a year-to-year approach. 2. For 2019 and 2020, compute the following ratios; (a) current, (b) inventory turnover, (c) receivables turnover, (d) net profit margin, (e) earnings per share, (f) return on total assets, (g) return on shareholders equity, and (h) debt-to-assets. 3. Next Level Based on your results, discuss the possible reasons for the decrease in the market price per share in 2020.