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Required: 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, 2023 and 2024. Note: Round "Earnings per share" answers to 2 decimal places. Net income Earnings per share Three Months Ended June Six Months Ended June 30 30 $ 2023 26,000 $ 2024 2023 26,000 $ 43,400 $ 2024 43,400

Required: 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, 2023 and 2024. Note: Round "Earnings per share" answers to 2 decimal places. Net income Earnings per share Three Months Ended June Six Months Ended June 30 30 $ 2023 26,000 $ 2024 2023 26,000 $ 43,400 $ 2024 43,400

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.
Section: Chapter Questions
Problem 3P: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for...
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Volata Company began operations on January 1, 2023. In the second quarter of 2024, 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: Accounts Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income Accounts Cost of goods sold (FIFO) 2023 2024 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter $ 33,000 $ 35,000 $ 37,000 $ 39,000 $ 41,000 7,300 4,500 $ 23,200 5,800 10,800 5,500 $ 24,700 6,175 $ 17,400 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: Net income Earnings per share 6,300 4,300 $ 22,400 5,600 $ 16,800 $ Sales for the second quarter of 2024 are $43,000, cost of goods sold under the FIFO method is $11,300, and operating expenses are $5,700. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. 2023 8,100 4,900 $ 24,000 6,000 $ 18,000 Required: 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, 2023 and 2024. Note: Round "Earnings per share" answers to 2 decimal places. 2023 2024 1st Quarter 2nd Quarter3rd Quarter4th Quarter1st Quarter $ 6,100 $ 6,900 $ 7,500 $ 8,300 $ 9,700 Three Months Ended June Six Months Ended June 30 30 2024 26,000 $ 26,000 9,300 5,300 $ 24,400 6,100 $ 18,300 $ 18,525 2023 $43,400 $ 2024 43,400
Transcribed Image Text:Volata Company began operations on January 1, 2023. In the second quarter of 2024, 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: Accounts Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income Accounts Cost of goods sold (FIFO) 2023 2024 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter $ 33,000 $ 35,000 $ 37,000 $ 39,000 $ 41,000 7,300 4,500 $ 23,200 5,800 10,800 5,500 $ 24,700 6,175 $ 17,400 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: Net income Earnings per share 6,300 4,300 $ 22,400 5,600 $ 16,800 $ Sales for the second quarter of 2024 are $43,000, cost of goods sold under the FIFO method is $11,300, and operating expenses are $5,700. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding. 2023 8,100 4,900 $ 24,000 6,000 $ 18,000 Required: 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, 2023 and 2024. Note: Round "Earnings per share" answers to 2 decimal places. 2023 2024 1st Quarter 2nd Quarter3rd Quarter4th Quarter1st Quarter $ 6,100 $ 6,900 $ 7,500 $ 8,300 $ 9,700 Three Months Ended June Six Months Ended June 30 30 2024 26,000 $ 26,000 9,300 5,300 $ 24,400 6,100 $ 18,300 $ 18,525 2023 $43,400 $ 2024 43,400
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