Question

Reither Co. reports the following information for 2020: sales revenue, $700,000; cost of goods sold, $500,000; selling and administrative expenses, $80,000; loss on sale of available-for-sale securities, $18,000; unrealized loss on available-for-sale securities, $60,000. Its tax rate is 25%. It issued no stock and declared and paid a dividend of $10,000 to stockholders of 150,000 weighted average shares of common stock outstanding. Reither Co. has these balances as of January 1, 2020: common stock, $350,000; paid-in capital in excess of par value, $70,000; retained earnings, $90,000; accumulated other comprehensive loss, $40,000.

Prepare a statement of comprehensive income. Round EPS to 2 decimal places.

Prepare a statement of stockholders’ equity.

Answer 1

Reithes Co., * statement of comprehensive in come for 2020 Pasti Culare AME($) Sales $700,000 less: Good sold Cost ($ 500.000) Gross margin $200,000 (6 80,000) Lese Selling d Admin. exp $120.000 Operating 20 come → lex: In come tox @95% 16 30.000) $80,000 Net En Corne Conikehensive in come los Un realised low on sale of Beauties 4560.000) lon $40,000) accumulatid Other Comprehensile Comprehensive in conte/llow) ($ 20,000 * statement of elial holdene equil particulale Amoont (82 Common Stock-faidu. Par valu $350,000 Excen of Pastalue $ 70.000 Retained farning (ww:) $ 60,000 $ 480,000 Total share holder's equity

W.10) statement of Relained Easnings for 20 20 Particular Aman) Retained earnings $ 90,000 $ 20,000) ($ 10,000 Dividend said Comprehensive los Retained faining Closing 7 $60,000 =($0.13) - Cainings Per Share - C# 20,000) 150,000 Shares
Earning per share is calculated by net earnings. So that the earning per share is ($0.13) .

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