Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer Company: Freight-in General and administrative expenses Interest expense Inventory Loss on sale of a major component of the business (pretax) Purchases Purchases returns Sales Sales discounts Selling expenses $7,500 50,000 15,000 165,000 15,000 330,000 5,000 700,000 10,000 25,000 The inventory on January 1 was $140,000. The income tax rate is 30%. There were 25,000 shares of common stock outstanding throughout the year. Required: a. Prepare a schedule of the cost of goods sold. b. Prepare a 2020 income statement for Rummer Company, using a multiple-step format (disregard earnings per share). c. Prepare a 2020 income statement for Rummer Company, using a single-step format (disregard earnings per share).

Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer Company: Freight-in General and administrative expenses Interest expense Inventory Loss on sale of a major component of the business (pretax) Purchases Purchases returns Sales Sales discounts Selling expenses $7,500 50,000 15,000 165,000 15,000 330,000 5,000 700,000 10,000 25,000 The inventory on January 1 was $140,000. The income tax rate is 30%. There were 25,000 shares of common stock outstanding throughout the year. Required: a. Prepare a schedule of the cost of goods sold. b. Prepare a 2020 income statement for Rummer Company, using a multiple-step format (disregard earnings per share). c. Prepare a 2020 income statement for Rummer Company, using a single-step format (disregard earnings per share).

Name: Please do not give solution in image format thanku Select information
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Please do not give solution in image format thanku Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer Company:Freight-inGeneral and administrative expensesInterest expenseInventoryLoss on sale of a major com

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 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...

See similar textbooks

Similar questions

Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
The following selected information is for Cullumber Company for the year ended January 31, 2024: Delivery expense Freight in Insurance expense Interest expense Merchandise inventory, beginning Merchandise inventory, ending O.G. Williams, capital O.G. Williams, drawings Purchases (a) $7,300 6,400 11.800 6,500 61,000 40,000 105,000 42,300 213,000 Purchase discounts Purchase returns and allowances Rent expense Salaries expense Salaries payable Sales Sales discounts Sales returns and allowances Unearned revenue $12,400 16,300 20,400 60,500 2,500 321,000 14,100 20,300 4,500 Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number 45 or parentheses eg. (45))
answer the three questions below The following accounts are extracted from the worksheet of X Company on December 31, 2020: Cost of Goods Sold Freight in Inventory (Jauary 1. 2020) Purchases Purcha ses Discount Purcha ses Returns and Allowances $950.000 200,000 300,000 980.000 60,000 40,000
Current Attempt in Progress The adjusted trial balance of Novak Corp. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $907,200; Freight-Out $13,600; Sales Returns and Allowances $19,800; and Sales Discounts $15,200. Prepare the sales section of the income statement. Novak Corp. Income Statement (Partial) +A
The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…
The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…
The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…
Cost of Merchandise Sold and Related Items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory $ 10,900 Merchandise inventory, May 1, 2018 435,600 Merchandise inventory, April 30, 2019 544,500 Purchases 3,539,000 Purchases returns and allowances 108,900 Purchases discounts 65,300 Sales 5,444,600 Freight in 16,300 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system.
The following information was obtained from the accor February 2020, the end of the financial year: Opening inventory Closing inventory Purchases Import duties Carriage on sales The cost of sales for the year ended 29 February 2020 amounted to Select one: a. R1 030 000 b. R1 080 000 c. R1 115 000 d. R1 065 000
View Policies Current Attempt in Progress The adjusted trial balance of Windsor, Inc. at the end of its fiscal year, August 31, 2022, includes these accounts: Inventory $20,600, Purchases $152,000, Sales Revenue $188,000, Freight-In $7,700, Sales Returns and Allowances $2,900, Freight-Out $1,000, and Purchase Returns and Allowances $4,800. The ending inventory is $19,000. Prepare a cost of goods sold section on the income statement for the year ending August 31, 2022 (periodic inventory system). Revenues Windsor, Inc. Income Statement - cost of goods sold section (periodic system) For the Year Ended August 31, 2022 $ $ SA $
Instructions Accounts, Labels and Amount Descriptions Select information below is taken from the December 31, 2020 adjusted trial balance of Accounts Rummer Company: Freight-in Freight-in $7,500 General and administrative expenses General and administrative expenses 50,000 Inventory, 1/1/20 Interest expense 15,000 Inventory, 12/31/20 Inventory 165,000 Interest expense Loss on sale of a major component of the business (pretax) 15,000 Income tax expense Purchases 330,000 Loss on sale of business component Purchases returns 5,000 Purchases Sales 700,000 Purchases returns Sales discounts 10,000 Sales Selling expenses 25,000 Sales discounts Selling expenses The inventory on January 1 was $140,000. The income tax rate is 30%. There were 25,000 Labels shares of common stock outstanding throughout the year. Expenses Operating expenses Required: Other items a. Prepare a schedule of the cost of goods sold. Amount Descriptions b. Prepare a 2020 income statement for Rummer Company, using a…
The comparative statements of Blossom Company are presented here: Blossom CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,899,640 $1,759,600 Cost of goods sold 1,067,640 1,015,100 Gross profit 832,000 744,500 Selling and administrative expenses 509,100 488,100 Income from operations 322,900 256,400 Other expenses and losses Interest expense 23,500 21,500 Income before income taxes 299,400 234,900 Income tax expense 93,500 74,500 Net income $205,900 $160,400 Blossom CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 126,900 111,900 Inventory 127,500 117,000 Total current assets 388,500 343,100 Plant assets…