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Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income 1stQ $ 32,000 Cost of goods sold (FIFO) 6,200 4,200 $ 21,600 5,400 $ 16,200 2ndQ $ 34,000 7,200 4,400 $ 22,400 5,600 $ 16,800 2019 3rdQ $ 36,000 8,000 4,800 $ 23,200 5,800 $ 17,400 2019 4thQ $ 38,000 9,200 5,200 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 1stQ 3rdQ 2ndQ $6,000 $6,800 $7,400 $ 23,600 5,900 $ 17,700 2020 1stQ $ 40,000 10,700 5,400 $ 23,900 5,975 $ 17,925 4thQ $ 8,200 2020 1stQ $9,600 Sales for the second quarter of 2020 are $42.000, cost of goods sold under the FIFO method is $11,200, and operating expenses are $5,600. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.)

Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income 1stQ $ 32,000 Cost of goods sold (FIFO) 6,200 4,200 $ 21,600 5,400 $ 16,200 2ndQ $ 34,000 7,200 4,400 $ 22,400 5,600 $ 16,800 2019 3rdQ $ 36,000 8,000 4,800 $ 23,200 5,800 $ 17,400 2019 4thQ $ 38,000 9,200 5,200 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 1stQ 3rdQ 2ndQ $6,000 $6,800 $7,400 $ 23,600 5,900 $ 17,700 2020 1stQ $ 40,000 10,700 5,400 $ 23,900 5,975 $ 17,925 4thQ $ 8,200 2020 1stQ $9,600 Sales for the second quarter of 2020 are $42.000, cost of goods sold under the FIFO method is $11,200, and operating expenses are $5,600. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.)

Intermediate Accounting: Reporting And Analysis
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
Chapter22: Accounting For Changes And Errors.
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Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net incone 1stę $ 32,000 Cost of goods sold (FIFO) 6,200 4,200 $ 21,600 5,400 $ 16,200 2ndQ $ 34,000 7,200 4,400 $ 22,400 5,600 $ 16,800 2019 Three Months Ended 3rdQ $36,000 2019 8,000 4,800 $ 23,200 5,800 $ 17,400 1stQ 2ndQ 3rdQ $6,000 $ 6,800 $ 7,400 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 4thQ $ 38,000 9,200 5,200 $ 23,600 5,900 $ 17,700 Six Months Ended 2020 1stQ $ 40,000 10,700 5,400 4thQ $8,200 $ 23,900 5,975 $ 17,925 Sales for the second quarter of 2020 are $42.000, cost of goods sold under the FIFO method is $11,200, and operating expenses are $5,600. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. 2020 1stQ $9,600 Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.)
Transcribed Image Text:Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net incone 1stę $ 32,000 Cost of goods sold (FIFO) 6,200 4,200 $ 21,600 5,400 $ 16,200 2ndQ $ 34,000 7,200 4,400 $ 22,400 5,600 $ 16,800 2019 Three Months Ended 3rdQ $36,000 2019 8,000 4,800 $ 23,200 5,800 $ 17,400 1stQ 2ndQ 3rdQ $6,000 $ 6,800 $ 7,400 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 4thQ $ 38,000 9,200 5,200 $ 23,600 5,900 $ 17,700 Six Months Ended 2020 1stQ $ 40,000 10,700 5,400 4thQ $8,200 $ 23,900 5,975 $ 17,925 Sales for the second quarter of 2020 are $42.000, cost of goods sold under the FIFO method is $11,200, and operating expenses are $5,600. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. 2020 1stQ $9,600 Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.)
aire au veen used since the company vegan operations, cost you in to the previous quarters would have been as follows: Cost of goods sold (FIFO) 1stQ $6,000 Net income Net income per common share Three Months Ended June 30 2019 2ndQ $ 6,800 2019 Sales for the second quarter of 2020 are $42.000, cost of goods sold under the FIFO method is $11,200, and operating expenses are $5,600. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. 2020 Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) 3rdQ $7,400 Six Months Ended June 30 2019 4thQ $ 8,200 2020 1stQ $9,600 2020
Transcribed Image Text:aire au veen used since the company vegan operations, cost you in to the previous quarters would have been as follows: Cost of goods sold (FIFO) 1stQ $6,000 Net income Net income per common share Three Months Ended June 30 2019 2ndQ $ 6,800 2019 Sales for the second quarter of 2020 are $42.000, cost of goods sold under the FIFO method is $11,200, and operating expenses are $5,600. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. 2020 Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) 3rdQ $7,400 Six Months Ended June 30 2019 4thQ $ 8,200 2020 1stQ $9,600 2020
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