E5-17 Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: LO 5.4 LO 5.10 Sales (net) Interest expense Cost of goods sold $124,000 3.700 66,200 Operating expenses Common stock, $5 par Retained earnings, 1/1/2019 $30,400 22,000 45,800 SHOW ME HOW The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of S1.28 per share was declared and paid. 2. Land was sold at a pretax gain of S6.300. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500 pretax operating loss during 2019. 3. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average sharcholders' equity is S90,000. Required: 1 Prepare a 2019 multiple-step income statement for Huff 2. Prepare a 2019 retained carnings statement. Compute the 2019 return. on common equity (Net Income 4 Average Sharcholders Equity)
E5-17 Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: LO 5.4 LO 5.10 Sales (net) Interest expense Cost of goods sold $124,000 3.700 66,200 Operating expenses Common stock, $5 par Retained earnings, 1/1/2019 $30,400 22,000 45,800 SHOW ME HOW The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of S1.28 per share was declared and paid. 2. Land was sold at a pretax gain of S6.300. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500 pretax operating loss during 2019. 3. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average sharcholders' equity is S90,000. Required: 1 Prepare a 2019 multiple-step income statement for Huff 2. Prepare a 2019 retained carnings statement. Compute the 2019 return. on common equity (Net Income 4 Average Sharcholders Equity)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
![Income Statement and Retained Earnings Huff Company presents the following items derived from its
December 31, 2019, adjusted trial balance:
E5-17
LO 5.4
LO 5.10
Sales (net)
Interest expense
Cost of goods sold
$124,000
3,700
66,200
Operating expenses
Common stock, $5 par
Retained earnings, 1/1/2019
$30,400
22,000
45,800
The following information is also available for 2019 and is not reflected in the preceding accounts:
1 The common stock has been outstanding all year. A cash dividend of S1.28 per share was declared and paid.
2.
SHOW
ME HOW
Land was sold at a pretax gain of S6,300.
3.
Division X (a major component of the company) was sold at a pretax gain of $4,700 It had incurred a $9.500
pretax opcrating loss during 2019
4.
A tornado, which is an unusual event in the area, cauused a $5,400 pretax loss.
5.
The income tax rate on all items of income is 30%,
6. The average sharcholders equity is S90,000
Required:
1 Prepare a 2019 multiple-step income statement forHuf
2. Prepare a 2019 retained carnings statement.
3. Compute the 2019 retum on common equity (Net Income 4 Average Sharehokders Equity)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f7bc303-2494-4179-bd3b-a5c8ff244442%2F58f18dd0-3f91-421c-8c78-9be90c814722%2F9epara_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income Statement and Retained Earnings Huff Company presents the following items derived from its
December 31, 2019, adjusted trial balance:
E5-17
LO 5.4
LO 5.10
Sales (net)
Interest expense
Cost of goods sold
$124,000
3,700
66,200
Operating expenses
Common stock, $5 par
Retained earnings, 1/1/2019
$30,400
22,000
45,800
The following information is also available for 2019 and is not reflected in the preceding accounts:
1 The common stock has been outstanding all year. A cash dividend of S1.28 per share was declared and paid.
2.
SHOW
ME HOW
Land was sold at a pretax gain of S6,300.
3.
Division X (a major component of the company) was sold at a pretax gain of $4,700 It had incurred a $9.500
pretax opcrating loss during 2019
4.
A tornado, which is an unusual event in the area, cauused a $5,400 pretax loss.
5.
The income tax rate on all items of income is 30%,
6. The average sharcholders equity is S90,000
Required:
1 Prepare a 2019 multiple-step income statement forHuf
2. Prepare a 2019 retained carnings statement.
3. Compute the 2019 retum on common equity (Net Income 4 Average Sharehokders Equity)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education