Question

Required information (The following information applies to the questions displayed below.) Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended March 31, 2016. Jordan also has completed a correct trial balance as follows: Credit Debit $ 58,300 49,400 1,500 34,100 $ 13,000 3,600 1,400 21,000 JORDAN SALES COMPANY Trial Balance At March 31, 2016 Account Titles Cash Accounts receivable Office supplies inventory Automobiles (company cars) Accumulated depreciation, automobiles Office equipment Accumulated depreciation, office equipment Accounts payable Income taxes payable Salaries and commissions payable Note payable, long-term Capital stock (par $1; 32,600 shares) Paid-in capital Retained earnings (on April 1, 2015) Dividends declared and paid during the current year Sales revenue Cost of goods sold Operating expenses (detail omitted to conserve time) Depreciation expense (on autos and including $400 on office equipment) Interest expense Income tax expense (not yet computed) Totals 1,400 33,000 32,600 4,600 7,000 10,700 103,700 32,400 18,900 7,400 1,400 $217,700 $217,700

Answer 1

$ $ $ 103,700 32,400 71,300 JORDAN SALES COMPANY Income Statement For the Year Ended March 31, 2016 Sales revenue Cost of goods sold Gross profit Operating expenses Operating expenses 18,900 Depreciation expense $ 7,400 Total operating expenses Income from operations Interest expense Income before income taxes Income tax expense ($43,600 * 35%) Net income Earnings per share ($28,340 / 32,600) 26,300 45,000 1,400 43,600 15,260 28,340 0.87 $