Use this information to Prepare a multiple-step income statement with earnings per share disclosure Denver Co. 12/31/2022 Debits Credits Partial Trial Balance Data Sales revenue 700,000 Interest revenue 60,000 Salary payable 15,000 Gain on sale of land 110,000 Patent 15,000 Supply inventory 25,000 Cost of goods sold 500,000 Salary expenses 150,000 Common stock 250,000 Retained earnings 150,000 Cash 250,000 Office expense 100,000 Denver's business segment, Division A, was sold at a pretax loss of 25,000 on July 1, 2022. It had earned a $13,000 pretax operating income from January 1, 2022 to the disposal date. Denver had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%. dont give me handwritten answers thank you
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Use this information to Prepare a multiple-step income statement with earnings per share
disclosure
Denver Co. 12/31/2022 Debits Credits
Partial
Sales revenue 700,000
Interest revenue 60,000
Salary payable 15,000
Gain on sale of land 110,000
Patent 15,000
Supply inventory 25,000
Cost of goods sold 500,000
Salary expenses 150,000
Common stock 250,000
Retained earnings 150,000
Cash 250,000
Office expense 100,000
Denver's business segment, Division A, was sold at a pretax loss of 25,000 on July 1, 2022. It
had earned a $13,000 pretax operating income from January 1, 2022 to the disposal date. Denver
had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been
accrued. The effective tax rate is 30%.
dont give me handwritten answers thank you
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