Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 1, Problem 1.8.2P
To determine
Concept Introduction:
Retained Earnings are the
To State: Information includes in statement of shareholders equity that doesn’t includes in statement of retained earnings.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Oriole Paper Mill, Inc., had, at the beginning of the current fiscal year, April 1, 2016, retained earnings of $ 322,525. During the year ended March 31, 2017, the company produced net income after taxes of $ 713,175 and paid out 41 percent of its net income as dividends. Construct a statement of retained earnings and compute the year-end balance of retained earnings. (Round answers to 2 decimal places, e.g. 15.25. List items that increase retained earnings first.)
Oriole Paper Mill, Inc.Retained Earnings for 2017
Assume a company starts operations on 1/1/2013 with an equity investment of $776,750. The companies next 7 years of financial performance are listed below. Assume that the company has no permanent or temporary differences for the first three fiscal years. During fiscal 2016 the company experiences a net operating loss. The marginal corporate tax rates for each year are located on the Income Statement.
Calculate taxable income (IRS), taxes payable (IRS)and tax expenses (USGAAP).
How should the company accounts for the Net Operating Loss.
Provide all Journal Entries & T-Accounts.
Create a complete set of financial statements (I/S, SRE, B/S, SCF) for the firm for years 2013 through 2019.
INCOME STATEMENT
1/1/13
12/31/13
12/31/14
12/31/15
12/31/16
12/31/17
12/31/18
12/31/19
Cash Sales
-
$776,750
$776,750
$776,750
$119,500
$836,500
$717,000
$746,875
Credit Sales
-
-
-
-
-
-
-
-
Instalment Sales
-
-
-
-
-
-…
Preparing a corporate income statement
ABC Corporation's accounting records include the following items, listed in no particular order, at December 31, 2018:
The income tax rate for ABC Corporation is 39%.
Prepare ABC’s income statement for the year ended December 31, 2018. Omit earnings per share. Use the multi-step format.
Chapter 1 Solutions
Using Financial Accounting Information
Ch. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - Prob. 1.3ECh. 1 - Prob. 1.4.1ECh. 1 - Prob. 1.4.2ECh. 1 - Prob. 1.4.3ECh. 1 - Prob. 1.4.4ECh. 1 - Prob. 1.5.1ECh. 1 - Prob. 1.5.2ECh. 1 - Prob. 1.5.3E
Ch. 1 - Changes in Owners’ Equity The following amounts...Ch. 1 - Prob. 1.6.2ECh. 1 - Prob. 1.6.3ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10.1ECh. 1 - Prob. 1.10.2ECh. 1 - Prob. 1.10.3ECh. 1 - Prob. 1.10.4ECh. 1 - Prob. 1.10.5ECh. 1 - Prob. 1.10.6ECh. 1 - Prob. 1.11ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4.1PCh. 1 - Prob. 1.4.2PCh. 1 - Prob. 1.5.1PCh. 1 - Prob. 1.5.2PCh. 1 - Prob. 1.5.3PCh. 1 - Prob. 1.5.4PCh. 1 - Prob. 1.6.1PCh. 1 - Prob. 1.6.2PCh. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7.1PCh. 1 - Prob. 1.7.2PCh. 1 - Prob. 1.7.3PCh. 1 - Prob. 1.7.4PCh. 1 - Prob. 1.8.1PCh. 1 - Prob. 1.8.2PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1AAPCh. 1 - Prob. 1.2AAPCh. 1 - Prob. 1.3AAPCh. 1 - Prob. 1.4AAPCh. 1 - Prob. 1.5AAPCh. 1 - Prob. 1.5.1AAPCh. 1 - Prob. 1.5.2AAPCh. 1 - Prob. 1.5.3AAPCh. 1 - Prob. 1.5.4AAPCh. 1 - Prob. 1.6.1AAPCh. 1 - Prob. 1.6.2AAPCh. 1 - Prob. 1.6.3AAPCh. 1 - Prob. 1.7.1AAPCh. 1 - Prob. 1.7.2AAPCh. 1 - Prob. 1.7.3AAPCh. 1 - Prob. 1.7.4AAPCh. 1 - Prob. 1.8.1AAPCh. 1 - Prob. 1.8.2AAPCh. 1 - Prob. 1.9AAPCh. 1 - Prob. 1.10AAMCP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Statement of Retained Earnings for Brunswick Corporation Brunswick Corporation reported the following amounts in various statements included in its Form 10-K for the year ended December 31, 2013. (All amounts are stated in millions of dollars.) Required Prepare a statement of retained earnings for Brunswick Corporation for the year ended December 31, 2013. Brunswick does not actually present a statement of retained earnings in its annual report. Instead, it presents a broader statement of shareholders equity. Describe the information that would be included on this statement that is not included on a statement of retained earnings.arrow_forwardStatement of Retained Earnings Landon Corporation was organized on January 2, 2014, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $85,200. Net income increased during 2015 to $125,320 and to $145,480 during 2016. Landon paid $20,000 in dividends to each of the two stockholders in each of the three years. Required Prepare a statement of retained earnings for the year ended December 31, 2016.arrow_forwardComprehensive: 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%?arrow_forward
- Statement of Retained Earnings Ace Corporation has been in business for many years. Retained earnings on January 1, 2016, is $235,800. The following information is available for the first two months of 2016: Required Prepare a statement of retained earnings for the month ended February 29, 2016.arrow_forwardThe balance in retained earnings on January 1, 2010, for Plaza Inc., was $575,000. During the year, the corporation paid cash dividends of $60,000 and distributed a stock dividend of $15,000. In addition, the company determined that it had overstated its depreciation expense in prior years by $40,000. Net income for 2018 was $110,000. Prepare the retained earnings statement for 2018.arrow_forwardRetained Earnings Statement Financial information related to Healthy Products Company for the month ended November 30, 2018, is as follows: Net income for November $93,500 Cash dividends paid during November 7,000 Retained earnings, November 1, 2018 2,940,000 a. Prepare a retained earnings statement for the month ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Healthy Products Company Retained Earnings Statement For the Month Ended November 30, 2018 $fill in the blank 0079c8fa300c05b_2 $fill in the blank 0079c8fa300c05b_4 fill in the blank 0079c8fa300c05b_6 fill in the blank 0079c8fa300c05b_8 $fill in the blank 0079c8fa300c05b_10 b. Why is the retained earnings statement prepared before the November 30, 2018, balance sheet? To arrive at the number of shares outstanding. To calculate the net income for the year. To calculate the ending…arrow_forward
- ABC Company reported retained earnings at December 31, 2017, of $310,000. .The following transactions occurred during 2018. An error was discovered. In 2016, depreciation expense was recorded at $70,000, but the correct amount was $50,000. Declared cash dividend of $100,000. Declared stock dividend of $150,000. Net income was $285,000 Prepare a retained earnings statement for 2018arrow_forwardThis exercise is built around Kroger’s financial statements from the chapter. Total shareholders' equity—The Kroger Co. was $5,384 million at February 1, 2014. Refer to Exhibits 6.1, 6.6 and 6.14 from the chapter. Required: Kroger earned an ROA of 6.9% in fiscal 2014. What was ROCE that year? (Round your answer to 1 decimal place.) ROA at the company fell to 3.7% in fiscal 2017 (adjusted to eliminate the one-time effect on earnings of the Tax Cuts and Jobs Act). What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act)? (Round your answer to 1 decimal place.) Did financial leverage help or hurt Kroger in fiscal 2017? 1. ROCE 2014 % 2. ROCE 2017 % 3. Did financial leverage help or hurt Kroger in fiscal 2017? Help or Hurt The solution provided here is incorrect on both ROCE 2014 and 2017 https://www.bartleby.com/questions-and-answers/accounting-question/c6ae7ccf-dbdc-4f14-a0f2-d10cf6b460ecarrow_forwardThis exercise is built around Kroger’s financial statements from the chapter. Total shareholders' equity—The Kroger Co. was $5,384 million at February 1, 2014. Refer to Exhibits 6.1, 6.6 and 6.14 from the chapter. Required: Kroger earned an ROA of 6.9% in fiscal 2014. What was ROCE that year? (Round your answer to 1 decimal place.) ROA at the company fell to 3.7% in fiscal 2017 (adjusted to eliminate the one-time effect on earnings of the Tax Cuts and Jobs Act). What was ROCE that year (also adjusted for the Tax Cuts and Jobs Act)? (Round your answer to 1 decimal place.) Did financial leverage help or hurt Kroger in fiscal 2017? 1. ROCE 2014 % 2. ROCE 2017 % 3. Did financial leverage help or hurt Kroger in fiscal 2017? Help or Hurtarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License