3. Prepare a corporate income statement in good form from the following year-end balances as of December 31, 2022, from the general ledger of Turner Corporation. The company had 10,000 shares of common issued and outstanding for the year. Administrative Expenses Cost of Goods Sold Income from the Operations of a condemned manufacturing unit Loss on Disposal of the condemned unit Sale of old office equipment (costing $50,000) Sales Selling Expenses Taxation rate is 30% $ 24,000 120,000 30,000 15,000 35,000 240,000 72,000
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Prepare a corporate income statement in good form from the following year-end balances as of December 31,2022 , from the general ledger of Turner Corporation. The company had 10,000 shares of common issued and outstanding for the year.
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- The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 $999,600 Sales Revenue 25,500,000 Cost of goods sold 16,320,000 Interest revenue 71,400 Selling and administrative expenses 4,794,000 Write-off of goodwill 836,400 Income taxes for 2020 1,268,880 Gain on the sale of investments 112,200 Loss due to flood damage 397,800 Loss on the disposition of the wholesale division (net of tax) 448,800 Loss on operations of the wholesale division (net of tax) 91,800 Dividends declared on common stock 255,000 Dividends declared on preferred stock 81,600 Sheridan Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheridan sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. (a1) Prepare a…Denver Corporation has the following events for the year ending December 31, 20XX. Income tax rate is 30%. Income from continuing operations - 487,200; gain on disposal of plastics division - 500,000; loss from tornado disaster - 600,000; income from operations of plastic division - 70,000; retained earnings - 675,000. Instructions: prepare in proper format the income statement, starting with income from continuing operations.Presented below is information related to Watt Company in its first year of operation. The following information is provided at December 31, 2021, the end of its first year.Sales revenue 450,000Cost of goods sold 210,000Selling and administrative expenses 75,000Gain on sale of plant assets 45,000Unrealized gain on available-for-sale financial assets 15,000Financial costs 10,000Loss on discontinued operations 20,000Allocation to non-controlling interest 60,000Dividends declared and paid 8,000 Compute the following (a) income from operations, (b) net income, (c) net income attributable to Watt Company shareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2021.
- Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2021 2020 Sales revenue $ 4,450,000 $ 3,550,000 Cost of goods sold 2,870,000 2,010,000 Administrative expense 810,000 685,000 Selling expense 370,000 312,000 Interest revenue 151,000 141,000 Interest expense 202,000 202,000 Loss on sale of assets of discontinued component 52,000 — On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $52,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2021–9/30/2021 2020 Sales revenue $ 410,000 $ 510,000 Cost of goods sold (295,000 ) (326,000 ) Administrative expense (51,000 ) (41,000 )…How do you figure: Income from continuing Operation and Discontinued Operation for this problem? Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2021 2020 Sales revenue $ 4,400,000 $ 3,500,000 Cost of goods sold 2,860,000 2,000,000 Administrative expense 800,000 675,000 Selling expense 360,000 302,000 Interest revenue 150,000 140,000 Interest expense 200,000 200,000 Loss on sale of assets of discontinued component 48,000 — On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $48,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2021–9/30/2021 2020 Sales revenue $ 400,000 $ 500,000 Cost…An entity reported the following information for the year ended December 31, 2020: Sales 7,750,000 Cost of goods sold 2,400,000 Administrative expenses 700,000 Loss on sale of equipment 100,000 Sales commissions 500,000 Interest revenue 450,000 Freight out 150,000 Loss on early extinguishment of long-term debt 200,000 Doubtful accounts expense 150,000 16. What is the income from continuing operations for 2020? a. 4,000,000 b. 3,800,000 c. 2,800,000 d. 2,600,000 17. What net amount of loss should be reported as results of discontinued operations for 2020? a. 1,500,000 b. 1,700,000 c. 1,050,000 d. 1,400,000 18. What is the net income for 2020? a. 2,500,000 b. 1,750,000 c. 1,400,000 d. 1,540,000
- The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,323,000 Cost of goods sold 1,138,270 Gross profit 1,184,730 Operating expenses Salaries expense $ 318,251 Depreciation expense 55,752 Rent expense 62,721 Amortization expenses—Patents 6,969 Utilities expense 25,553 469,246 715,484 Gain on sale of equipment 9,292 Net income $ 724,776 Accounts receivable $ 31,400 increase Accounts payable $ 12,675 decrease Inventory 26,100 increase Salaries payable 2,500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating…Prepare an income statement using the following data for New Orleans Adventures for the year ended December 31: Sales $24,500,000 Cost of goods sold $10,900,000 Operating expenses $6,300,000 Income tax expense $500,000 Loss on discontinued operations $90,000The following information is related to Nash Company for 2020. Retained earnings balance, January 1, 2020 $901,600 Sales Revenue 23,000,000 Cost of goods sold 14,720,000 Interest revenue 64,400 Selling and administrative expenses 4,324,000 Write-off of goodwill 754,400 Income taxes for 2020 1,144,480 Gain on the sale of investments 101,200 Loss due to flood damage 358,800 Loss on the disposition of the wholesale division (net of tax) 404,800 Loss on operations of the wholesale division (net of tax) 82,800 Dividends declared on common stock 230,000 Dividends declared on preferred stock 73,600 Nash Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Nash sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. (a1) New attempt is in…
- The Lagerstroemia Corporation was formed on January 1 of the current year. Calculate the Lagerstroemia Corporation'staxable income or loss for the current year given the following informationGross receipts $255,000Cost of goods sold 150,000Dividend income (from 10-percent-owned domestic corporation) 35,000Interest income 10,000Business expenses (other than organizational costs) 120,000Organizational costs expensed 5,000Taxable income/(loss) $The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,222, 000 Cost of goods sold 1,088, 780 Gross profit 1, 133, 220 Operating expenses Salaries expense S 304, 414 Depreciation experise 53, 328 Rent expense 59, 994 Amortization expenses-Patents 6,666 Utilities expense 24, 442 448, 844 684,376 Gain on sale of equipment 8, 888 Net income $ 693, 264 Accounts receivable $ 22, 650 increase Accounts payable $ 9,650 decrease Inventory 19, 475 increase Salaries payable 5, 500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.).The following income statement and additional year-end information is provided. SONAD COMPANYIncome StatementFor Year Ended December 31 Sales $ 2,420,000 Cost of goods sold 1,185,800 Gross profit 1,234,200 Operating expenses Salaries expense $ 331,540 Depreciation expense 58,080 Rent expense 65,340 Amortization expenses—Patents 7,260 Utilities expense 26,620 488,840 745,360 Gain on sale of equipment 9,680 Net income $ 755,040 Accounts receivable $ 36,900 increase Accounts payable $ 10,425 decrease Inventory 36,800 increase Salaries payable 3,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from…