Answer A:
Income Statement for the Year 2020 | Amount in $ |
Income from Continuing Operations before tax | 1100000 |
Expenses: | |
Less: Restructing Charge | 16000 |
Less: Loss due to flood | 20000 |
Less: Depreciation Expense for the machine from Year 17 to Year 20 | 22000 |
Less: Loss on account of sale of asset | 500000 |
Profit Before Tax | 542000 |
Tax @40% | 216800 |
Profit After Tax | 325200 |
Answer B:
Retained Earnings | Amount in $ |
Opening Balance as on Year 2020 | 6500000 |
Add: Profit After Tax during the year 2020 | 325200 |
Less: Cash Dividends paid out | 70000 |
Closing balance | 6755200 |
Question 2: At the beginning of its 2020 calendar-year accounting period, Clay, Inc. had retained earnings...
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- + Automatic Zoom # At the beginning of its 2013 calendar-year accounting period, Commet, Inc. had retained earnings of $6,500,000. During 2013, Commet reported income from continuing operations before taxes of $1,100,000. The following additional transactions occurred in 2013 but were not included in the $1,100,000. Assume all of the following were material 1. Commet had a restructuring charge of $16,000 (pre-tax) 2. Commet had an uninsured flood loss of $20,000 (pre-tax) which was considered to...
On January 1, 2020, Wade Corp. had retained earnings of $558,000. During 2020, Wade reported the following information: 1. Income from continuing operations: $1,210,000. 2. Wade increased its percentage of uncollectible accounts receivable from 5% in 2019 to 10% in 2020. The new percentage was used in calculating the current year’s bad debt expense. 3. Wade discontinued operations of one of its subsidiaries at a loss of $190,000 before taxes. The disposal met the criteria for discontinued operations. 4. An...
On January 1, 2020, Wade Corp. had retained earnings of $558,000. During 2020, Wade reported the following information: 1. Income from continuing operations: $1,210,000. 2. Wade increased its percentage of uncollectible accounts receivable from 5% in 2019 to 10% in 2020. The new percentage was used in calculating the current year’s bad debt expense. 3. Wade discontinued operations of one of its subsidiaries at a loss of $190,000 before taxes. The disposal met the criteria for discontinued operations. 4. An...
Counting Crows Inc. provided the following information for the
year 2020.
Retained earnings, January 1, 2020
$
600,000
Administrative expenses
240,000
Selling expenses
300,000
Sales revenue
1,900,000
Cash dividends declared
80,000
Cost of goods sold
850,000
Loss on discontinued operations
110,000
Rent revenue
102,700
Unrealized holding gain on available-for-sale debt
securities
17,000
Income tax applicable to continuing operations
187,000
Income tax benefit applicable to loss on discontinued
operations
60,500
Income tax applicable to unrealized holding gain on
available-for-sale debt securities...
On 1/1/2017, the beginning of the 2017 annual accounting period, Skullduggery, Co. had a Retained Earnings balance of $11,340. For the three years of 2017, 2018 and 2019, the company reported the following information: Year Net Income (Loss) Dividends 2017 $8,210 $ 330 2018 ($1,880) $0 2019 $4,500 $150 What was the company's Retained Earnings as reported on the classified balance sheet as of 12/31/2019? a. $4,350. b. $26,410. c. $21,690. d. $10,350. e. None of the answers given are...
Just need to see if #1 is correct and need
#2 answered
Income Statement and Statement of Retained Earnings Background: Husky Sports Inc. started its business in January 2018. At the beginning of its 2020 calendar-year accounting period, Husky, Inc. had retained earnings of $1,500,000. During 2020 (year 3 in business), Husky Sports Inc. reported income from continuing operations before taxes of $600,000. The following additional transactions occurred in 2020 but were not included in the $600,000. Assume all of...
Just
need to see if #1 is correct and need #2 answered
Income Statement and Statement of Retained Earnings Background: Husky Sports Inc. started its business in January 2018. At the beginning of its 2020 calendar-year accounting period, Husky, Inc. had retained earnings of $1,500,000. During 2020 (year 3 in business), Husky Sports Inc. reported income from continuing operations before taxes of $600,000. The following additional transactions occurred in 2020 but were not included in the $600,000. Assume all of...
prepare a 2020 retained earnings statement for jason woo
corporation
QUESTION 4 Problem 4-Statement of Retained Earnings Jason Woo Corporation began operations on January 1, 2017. During its first 3 years of operations, Woo reported net income and declared dividends as follows. Net income 2017 $160,000 2018 500,000 2019 740,000 Dividends declared $ 0 100,000 200,000 The following information relates to 2020 $960,000 $200,000 Income before income tax Prior period adjustment: understatement of 2015 depreciation expense (before taxes) Cumulative increase...
Pitchfork, Inc. is preparing its 2020 financial statements. The company's accountant calculated Income from Continuing Operations to be $1,700,000, but upon further review is not certain this number is accurate. Pitchfork has a corporate income tax rate of 30%. Additionally, the company reports only one year of financial data on the face of the financial statements. All amounts listed are pretax unless otherwise noted. After reviewing the following information, determine the appropriate adjustments, if any, to Income from Continuing Operations. Once...
The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $999,600 25,500,000 16,320,000...