Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,217,000 Discontinued operations loss (net of tax) 60,900 Selling expenses 129,600 Cash 61,500 Accounts receivable 88,800 Common stock 200,000 Cost of goods sold 704,000 Accumulated depreciation-machinery 180.400 Dividend revenue 8,200 Unearned service revenue 4,600 Interest payable 1,100 Land 380,000 Patents 101,000 Retained earnings, January 1, 2020 304,040 Interest expense 19,800 Administrative expenses 172,600 Dividends declared 22,400 Allowance for doubtful accounts 4,900 Notes payable (maturity 7/1/23) 191,000 Machinery 451,000 Materials 41,400 Accounts payable 62,000 e amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which punted to $26,100.
Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,217,000 Discontinued operations loss (net of tax) 60,900 Selling expenses 129,600 Cash 61,500 Accounts receivable 88,800 Common stock 200,000 Cost of goods sold 704,000 Accumulated depreciation-machinery 180.400 Dividend revenue 8,200 Unearned service revenue 4,600 Interest payable 1,100 Land 380,000 Patents 101,000 Retained earnings, January 1, 2020 304,040 Interest expense 19,800 Administrative expenses 172,600 Dividends declared 22,400 Allowance for doubtful accounts 4,900 Notes payable (maturity 7/1/23) 191,000 Machinery 451,000 Materials 41,400 Accounts payable 62,000 e amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which punted to $26,100.
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 8MC: Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde...
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Transcribed Image Text:Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the
accounts and discussions with company officials revealed the following information:
Sales revenue
$1,217,000
Discontinued operations loss (net of tax)
60,900
Selling expenses
129,600
Cash
61.500
Accounts receivable
88,800
Common stock
200,000
Cost of goods sold
704,000
Accumulated depreciation-machinery
180,400
Dividend revenue
8,200
Unearned service revenue
4,600
Interest payable
1,100
Land
380,000
Patents
101,000
Retained earnings, January 1, 2020
304,040
Interest expense
19,800
Administrative expenses
172,600
Dividends declared
22,400
Allowance for doubtful accounts
4,900
Notes payable (maturity 7/1/23)
191,000
Machinery
451,000
Materials
41,400
Accounts payable
62,000
The amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which
amounted to $26,100.
Transcribed Image Text:(a)
Prepare a multiple-step income statement.
Sheridan Corporation
INCOME STATEMENT
For the Year Ended December 31, 2020
Sales Revenue
Cost of Goods Sold
Gross Profit/ (Loss)
Operating Expenses
Selling Expenses
Administrative Expenses
Total Operating Expenses
Income from Operations
Other Revenue and Expense
Interest Expense
Dividend Revenue
Income Before Income Taxes
Income Taxes
Income from Continuing Operations
Discontinued Operations Loss, Net of Tax
Net Income / (Loss)
Per Share of Common Stock
Income from Continuing Operations
2$
Discontinued Operations Loss, Net of Tax
Net Income/ (Loss)
Expert Solution
Step 1
An income statement is a financial statement which shows a company's income and expenses. It also indicates the company is profitable or going bankrupt over a specific time period. The income statement, along with the balance sheet and cash flow statement, helps you understand the financial health of your company. The income statement is also known as a profit and loss statement, a statement of operations, a financial result or income statement, or an earnings statement. A profit and loss statement helps business owners determine whether they can generate profitability by increasing revenues, decreasing costs, or doing both.
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