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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Net Income and Comprehensive Income At the beginning of 2019, JR Company’s shareholders’ equity was as follows:

Chapter 5, Problem 11P, Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as

During 2019, the following events and transactions occurred:

  1. 1. JR recognized sales revenues of $108,000. It incurred cost of goods sold of $62,000 and operating expenses of $12,000,
  2. 2. JR issued 1,000 shares of its $5 par common stock for $14 per share.
  3. 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. 4. JR paid dividends of $6,000.

The income tax rate on all items of income is 30%.

Required:

  1. 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share).
  2. 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.

1.

To determine

Provide an income statement for JR Company for 2019.

Explanation

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Provide an income statement for JR Company for 2019.

Company JR
Statement of  Income and Comprehensive Income
For the Year Ended December 31, 2019
ParticularsAmountAmount
($)($)
Sales revenue$108,000  
Less:

2.

To determine

Provide the following:

(a) An income statement

(b) Statement of comprehensive income

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