The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as 22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800. Revenues: Sales Gain on sale of equipment Interest income Weatherford International Inc. Income Statement December 31, 2020 Gain on sale of plant Operating profit on discontinued operation Expenses: Cost of goods sold Selling and administrative expenses Sales discounts Loss on sale of discontinued operation Dividends Profit Earnings per share $1,187,000 15,800 7,000 143,000 29,740 $1,382,540 $ 362,000 187,000 12,460 37,400 134,000 732,860 $ 649,680 $ 5.70 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)
The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as 22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800. Revenues: Sales Gain on sale of equipment Interest income Weatherford International Inc. Income Statement December 31, 2020 Gain on sale of plant Operating profit on discontinued operation Expenses: Cost of goods sold Selling and administrative expenses Sales discounts Loss on sale of discontinued operation Dividends Profit Earnings per share $1,187,000 15,800 7,000 143,000 29,740 $1,382,540 $ 362,000 187,000 12,460 37,400 134,000 732,860 $ 649,680 $ 5.70 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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Transcribed Image Text:The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced
bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are
before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as
22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800.
Weatherford International Inc.
Income Statement
December 31, 2020
Revenues:
Sales
Gain on sale of equipment
Interest income
Gain on sale of plant
Operating profit on discontinued operation
Expenses:
Cost of goods sold
Selling and administrative expenses
Sales discounts
Loss on sale of discontinued operation
Dividends
Profit
Earnings per share.
$1,187,000
15,800
7,000
$
143,000
29,740 $1,382,540
362,000
187,000
12,460
37,400
134,000
$
732,860
649,680
5.70
Required:
Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus
sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share"
answers to 2 decimal places.)
Transcribed Image Text:WEATHERFORD INTERNATIONAL INC.
Income Statement
For Year Ended December 31, 2020
Net sales
Cost of goods sold
Gross profit
Operating profit from discontinued operation
Other revenues and expenses:
Interest income
Gain on sale of equipment
Gain on sale of plant
Loss from continuing operations before income tax
Income tax expense
Profit from continuing operations
Discontinued operations:
Earnings per share of common shares outstanding
Profit from continuing operations
Loss from discontinued operations
Profit
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