E5-8. Discontinued Operations. Elegant Homes Corporation provided the following statement of net income onDecember 31, 2022, before the disposal of a business segment. The income statement includes the results ofoperations of Elegant's mobile home division. The company made a commitment to dispose of the mobilehome division on December 1, 2022.Elegant Homes CorporationIncome StatementFor the Year Ended December 31, 2022Sales$500Cost of Goods Sold(120)Gross Profit$380Selling Expenses(80)General and Administrative Expenses(65)Other Revenues and Expenses(40)Loss on Asset Impairment(38)Income before Tax$157Income Tax Expense (at 40%)(63)Net Income$ 94The mobile home division accounts for 20% of sales, cost of goods sold, selling, and general and administra-tive expenses. Assume no gain or loss on remeasurement of the division.Prepare the multiple-step income statement for 2022 only, assuming that Elegant sells the segment onDecember 31 at a $130 pretax loss. Round to the nearest dollar.

Elegant Homes Corporation Income Statement For the Year Ended December 31, 2022 Sales $500…

Answered: E5-8. Discontinued Operations. Elegant…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tenggiri Bhd (TB) began business at the start of the current year and maintains its accounting records on an absorption-cost basis. The following selected information appeared on the company's profit or loss statement and end-of-year statement of financial position: Profit or Loss Data: RM Sales revenues (35,000 units @ RM24) Gross Margin Total sales and administrative expenses 840,000 210,000 160,000 Financial Position Data: Ending finished-goods inventory (12,000 units) 216,0000 There is no beginning finished-goods inventory. TB achieved its planned production level for The company's fixed manufacturing overhead totaled RM188,000, and the firm paid the year. a 10% commission based on gross sales (RM) to its sales force. Required: a) Compute the number of units that TB planned to produce during the year. b) Compute the fixed manufacturing overhead per unit for TB. c) Compute TB's cost of goods sold using absorption costing. d) Compute the variable cost per unit for TB using absorption…
The following is information for Novak Corp. for the year ended December 31, 2020: Sales revenue $1,420,000 Loss on inventory due to decline in net realizable value $70,000 Unrealized gain on FV-OCI equity investments 46,000 Loss on disposal of equipment 45,000 Interest income 9,000 Depreciation expense related to buildings omitted by mistake in 2019 56,000 Cost of goods sold 852,000 Retained earnings at December 31, 2019 950,000 Selling expenses 71,000 Loss from expropriation of land 57,000 Administrative expenses 52,000 Dividends declared 46,000 Dividend revenue 15,000 The effective tax rate is 25% on all items. Novak prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income. a)Prepare the retained earnings section of the statement of changes in equity for 2020. (List…
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8. The following information is related to Diego Company for the year 2025. Cost of goods sold $260,000 Operating expenses Other revenues and gains 5,600 Net sales Unrealized gain on available-for-sale securities Gain on disposal of plastics division related to discontinued operations 15,000 Other expenses and losses. Loss on plastics division operations related to discontinued operations 130,000 440,000 9,600 $ 60,000 50,000 Prepare a multiple-step income statement and a comprehensive income statement for Diego Company (the two statement approach). The income tax rate is 30%, and the weighted-average number of common shares outstanding is 10,000.
3. In the company's interim income statement for the six months ended June 30, 2020, what total amount of expense relating to these items should be reported? Maya-Maya Company had the following transactions during 2020: a. On January 1, Vilma company recorded a loss resulting from a change in inventory valuation method of P80,000. b. The company had estimated that total depreciation expense for the year ended December 31, 2020 will amount to P400,000. As of the beginning of the year, the company had fixed assets amounting to P1,000,000 and acquired additional fixed assets of P2,000,000 on June 30, 2020. The estimated useful life is for 5 years. c. The 2020 year-end bonuses to employees will total P600,000. d. The company had also a 180-day note receivable dated February 28, 2020, amounting to P3,000,000 and carries a 12% interest rate. It was discounted without recourse on the same day for a net proceed of P2,985,000.
Swifty Enterprises reported cost of goods sold for 2025 of $1,453, 700 and retained earnings of $5,392, 600 at December 31, 2025. Swifty later discovered that its ending inventories at December 31, 2024 and 2025, were overstated by $102, 820 and $37,880, respectively. Determine the corrected amounts for 2025 cost of goods sold and December 31, 2025, retained earnings. Corrected cost of goods sold $enter a dollar amount Corrected 12/31/25 retained earnings $enter a dollar amount
In the company’s interim income statement for the six months ended June 30, 2020, what total amount of expense relating to these items should be reported? Round UP your FINAL answers up to two decimal places.
Crane Company reported the following information for November and December 2022. Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue (a) November December $531,000 $606,000 138,000 Gross profit rate 181,650 Crane's ending inventory at December 31 was destroyed in a fire. 855,000 1,000,000 Compute the gross profit rate for November. 181,650 %

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