At December 31, 2023, Novak Corporation had the following shares outstanding: 6% cumulative preferred shares, 100,600 shares outstanding $10,060,000 Common shares, 4,060,000 shares outstanding 20,300,000 During 2023, the corporation's only share transaction was the issuance of 380,000 common shares on April 1. During 2023, the following also occurred: Income from continuing operations before tax Discontinued operations (loss before tax) Preferred dividends declared Common dividends declared Effective tax rate $25.070,000 3,058,000 603,600 2,220,000 35% Calculate earnings per share information as it should appear in the financial statements of Novak for the year ended December 31, 2023. (Round per share answers to 2 decimal places, e.g. 52.75.)

Q: After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect…

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Q: What is debit

A: Debit is an entry recorded in the left side column of an account.

Q: Net income may be based on estimates.   true or False

A: Net income: Net income is the revenue of the company after deducting all the expenses and taxes. It…

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.