Homework Answers
a) Journal entry
| Date | General Journal | Debit | Credit |
| June 26 | Cash dividend | 80000 | |
| Dividend payable | 80000 | ||
| (dividend declared) | |||
| July 9 | Dividend payable | 80000 | |
| Cash | 80000 | ||
| (dividend paid) | |||
| Dec 26 | Cash dividend | 80000 | |
| Dividend payable | 80000 | ||
| (dividend declared) |
b) Multiple step income statement
| Sales revenue | 1425000 | |
| Cost of goods sold | 950000 | |
| Gross profit | 475000 | |
| Operating expense | 270000 | |
| Operating income | 205000 | |
| Other revenues | 45000 | |
| Other expense | -30000 | |
| 15000 | ||
| Income before tax | 220000 | |
| Income tax (220000*20%) | 44000 | |
| Net income | 176000 | |
Statement of retained earnings
| Beginning retained earnings | 1150000 |
| Add: Net income | 176000 |
| Less: Dividend | -160000 |
| Ending retained earnings | 1166000 |
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nds: prepare ent and tained 5.4.5) AP P13-5B Hyperchip Limited is a private corporation reporting under...
Capricorn Inc. is a private company reporting under ASPE. Its unadjusted trial balance at its fiscal...
Capricorn Inc. is a private company reporting under ASPE. Its unadjusted trial balance at its fiscal year end, December 31, 2023 is shown below: Capricorn Inc. Unadjusted Trial Balance December 31, 2023 Debit Credit Cash $38,000 Inventory 46,500 Supplies 5,000 Building 600,000 Accumulated depreciation – building 120,000 Equipment 330,000 Accumulated depreciation – equipment $66,000 Accounts payable 34,000 Dividends payable 0 Interest payable 0 Income tax payable 0 Unearned revenue 30,600 Bonds payable (maturity date January 1, 2029) 500,000 Preferred shares...
Problem 1-5B Prepare financial statements (L01-3) Tar Heel Corporation provides the following information at the end...
Problem 1-5B Prepare financial statements (L01-3) Tar Heel Corporation provides the following information at the end of 2021. Salaries payable to workers at the end of the year Advertising expense for the year Building that has been purehased Supplies at the end of the year Retained earnings Utility expense for the year Note payable to the bank Service revenue recognized during the year Salary expense for the year Accounts payable to suppliers Dividends paid to shareholders during the year Common...
do part a), b) P17-3B Sable Island Ltd. is a private company reporting under ASPE. Its...
do
part a), b)
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Current Attempt in Progress Crane Corporation is a private company in Canada following ASPE. On December...
Current Attempt in Progress Crane Corporation is a private company in Canada following ASPE. On December 31, 2019, the company had reported $2,800,000 in retained earnings on its financial statements. During the year, Crane had net income of $800,000 and declared cash dividends of $140,000. Also, during the year. Crane made a retrospective change in accounting policy by applying a new inventory costing method. The change improved prior years' net income by $80,000, before income taxes (tax rate is 25%)....
P17-3B Sable Island Ltd. is a private company reporting under ASPE. Its income statement contained the following c...
P17-3B Sable Island Ltd. is a private company reporting under ASPE. Its income statement contained the following condensed information: $900,000 SABLE ISLAND LTD. Income Statement Year Ended December 31, 2017 Fees earned Operating expenses $642,000 Depreciation expense 50,000 Gain on sale of equipment (23,000) Profit from operations Other expenses Interest expense Profit before income tax Income tax expense Profit 669,000 231,000 5,000 226,000 56,500 $169,500 Sable Island's balance sheet contained the following comparative data at December 31: 2017 2016 Accounts...
The Bridgeport Corporation, a private company, began operations on January 1, 2017. During its first three...
The Bridgeport Corporation, a private company, began operations on January 1, 2017. During its first three years of operations, Bridgeport reported net income and declared dividends as follows: Dividends declared 2017 2018 2019 Net income $50,000 139,000 159,000 50,000 50,000 The following information is for 2020: Income before income tax Correction of prior period error: understatement of 2018 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount,...
PA1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet [LO2) You are the...
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Blue Eagle Corporation began operations on January 1, 2014. Recently the corporation has had several unusual...
Blue Eagle Corporation began operations on January 1, 2014.
Recently the corporation has had several unusual accounting
problems related to the presentation of its income statement for
financial reporting purposes. The company follows ASPE.
You are the CPA for Blue Eagle and have been asked to examine the
following data:
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Income Statement
For the Year Ended December 31, 2017
Sales
$9,500,000
Cost of goods sold
5,900,000
Gross profit
3,600,000
Selling and administrative expense
1,300,000
Income before income...
Can someone explain the steps of how to do this? Thank you! Stone Culture Corporation was...
Can
someone explain the steps of how to do this? Thank you!
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Livingston Company is a wholly owned subsidiary of Rose Corporation. Livingston operates in a foreign country...
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do
part a), b)
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Current Attempt in Progress Crane Corporation is a private company in Canada following ASPE. On December 31, 2019, the company had reported $2,800,000 in retained earnings on its financial statements. During the year, Crane had net income of $800,000 and declared cash dividends of $140,000. Also, during the year. Crane made a retrospective change in accounting policy by applying a new inventory costing method. The change improved prior years' net income by $80,000, before income taxes (tax rate is 25%)....
P17-3B Sable Island Ltd. is a private company reporting under ASPE. Its income statement contained the following condensed information: $900,000 SABLE ISLAND LTD. Income Statement Year Ended December 31, 2017 Fees earned Operating expenses $642,000 Depreciation expense 50,000 Gain on sale of equipment (23,000) Profit from operations Other expenses Interest expense Profit before income tax Income tax expense Profit 669,000 231,000 5,000 226,000 56,500 $169,500 Sable Island's balance sheet contained the following comparative data at December 31: 2017 2016 Accounts...
The Bridgeport Corporation, a private company, began operations on January 1, 2017. During its first three years of operations, Bridgeport reported net income and declared dividends as follows: Dividends declared 2017 2018 2019 Net income $50,000 139,000 159,000 50,000 50,000 The following information is for 2020: Income before income tax Correction of prior period error: understatement of 2018 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount,...
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Blue Eagle Corporation began operations on January 1, 2014.
Recently the corporation has had several unusual accounting
problems related to the presentation of its income statement for
financial reporting purposes. The company follows ASPE.
You are the CPA for Blue Eagle and have been asked to examine the
following data:
BLUE EAGLE CORPORATION
Income Statement
For the Year Ended December 31, 2017
Sales
$9,500,000
Cost of goods sold
5,900,000
Gross profit
3,600,000
Selling and administrative expense
1,300,000
Income before income...
Can
someone explain the steps of how to do this? Thank you!
Stone Culture Corporation was organized on January 1, 2017 For its first two years of operations, it reported the following: Net Income for 2017 Net Income for 2018 Dividends for 2017 Dividends for 2018 Total assets at the end of 2017 Total assets at the end of 2018 $ 40,000 45,000 15,000 20,000 125,000 242,000 On the basis of the data given, prepare a statement of retained earnings...
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