Question

< > Question 2 of 5 View Policies Current Attempt in Progress The following balances were taken from the books of Waterway Corp. on December 31, 2020. Interest revenue Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings Cost of goods sold $87.900 52.900 1,381,900 151.900 21.900 151.900 8.900 46,900 101,900 201,900 141,900 622,900 Accumulated depreciation-equipment Accumulated depreciation--buildings Notes receivable Selling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage Common stock Retained earnings $41,900 29,900 156,900 195.900 171.900 101.900 98,900 33.900 61.900 101.900 151,900 501,900 22.900 Assume the total effective tax rate on all items is 20% Prepare a multiple-step income statement: 100,000 shares of common stock were outstanding during the year. (Round earnings Share to 2 decimal places, es. 1.48.) WATERWAY CORP. Income Statement BI

Answer 1

$1,381,900 ($198,800) $1,183,100 ($622,900) $560,200 WATERWAY CORP. Income Statement for the period of December 31, 2020 Sales Sales revenue Less: Sales discounts ($46,900) Less: Sales returns and allowances ($151,900) Net sales Cost of goods sold Gross profit Operating expenses: Selling expenses ($195,900) Administrative and general expenses ($98,900) Operating income Non-operating incomes and expenses: Interest revenue Interest expense Income before taxes Income tax @20% Income from continuing operations Extraordinary items: Loss from earthquake ($151,900*80%) Net Income Earnings Per Share ($228,160/100000) ($294,800) $265,400 $87,900 ($61,900) $291,400 ($58,280) $233,120 ($121,520) $111,600 $1.12

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