From the information below, prepare a properly classified, multiple-step income statement complete with earnings per share data. In addition, prepare a property classified retained earnings statement. Happy Corporation Trial Balance 12/31/xx Cash $14,000 Accounts Receivable 40,000 Allowance for Bad Debts Interest Receivable 1,700 Inventory 1/1/xxx Building Acc Repr-Building 41,500 50,000 Store Furniture & Fixtures 75,000 Acc Deer Store Furniture & Fixtures Long Term Investments 20,000 Sales Salaries Payable Dividends Payable Income Tax Payable Common Stock $10 par $800 5,000 7,500 1,600 10,000 15,820 Retaining Earnings 1/1/xxx 100,000 7,100 Dividends 10,000 Sales 450,000 Sales Discount 4,500 Purchases 200,000 Purchases Discounts 3,000 Freight in 4,000 Misc General Expense 2,500 Officer Salaries Expense 55,000 Office Wage Expense 25,000 Misc Office Expense 3,000 Sales Salaries Expense 41,600 Misc Selling Expense 10,000 Rear Expense-Building 2,500 A) Ending Inventory 12/31/xx is $38,000 $679,320 $679,320 B) The loss on disposal is already NET of tax of $6,000, the operating loss is already NET of tax of $4,000 C) The uninsured flood loss is already NET of tax of $2,000 DEB Expense-Store F & Fix 7,500 Bad Debt Expense Interest Revenue 700 Loss on Disposal of Business Seg 30,000 Operating Loss on Business Seg 20,000 Income Tax Expense 15,820 Gain on Sale of Investment Uninsured Flood Loss 5,000 5,000 2,000
From the information below, prepare a properly classified, multiple-step income statement complete with earnings per share data. In addition, prepare a property classified retained earnings statement. Happy Corporation Trial Balance 12/31/xx Cash $14,000 Accounts Receivable 40,000 Allowance for Bad Debts Interest Receivable 1,700 Inventory 1/1/xxx Building Acc Repr-Building 41,500 50,000 Store Furniture & Fixtures 75,000 Acc Deer Store Furniture & Fixtures Long Term Investments 20,000 Sales Salaries Payable Dividends Payable Income Tax Payable Common Stock $10 par $800 5,000 7,500 1,600 10,000 15,820 Retaining Earnings 1/1/xxx 100,000 7,100 Dividends 10,000 Sales 450,000 Sales Discount 4,500 Purchases 200,000 Purchases Discounts 3,000 Freight in 4,000 Misc General Expense 2,500 Officer Salaries Expense 55,000 Office Wage Expense 25,000 Misc Office Expense 3,000 Sales Salaries Expense 41,600 Misc Selling Expense 10,000 Rear Expense-Building 2,500 A) Ending Inventory 12/31/xx is $38,000 $679,320 $679,320 B) The loss on disposal is already NET of tax of $6,000, the operating loss is already NET of tax of $4,000 C) The uninsured flood loss is already NET of tax of $2,000 DEB Expense-Store F & Fix 7,500 Bad Debt Expense Interest Revenue 700 Loss on Disposal of Business Seg 30,000 Operating Loss on Business Seg 20,000 Income Tax Expense 15,820 Gain on Sale of Investment Uninsured Flood Loss 5,000 5,000 2,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:From the information below, prepare a properly classified, multiple-step income statement
complete with earnings per share data. In addition, prepare a property classified retained
earnings statement.
Happy Corporation
Trial Balance
12/31/xx
Cash
$14,000
Accounts Receivable 40,000
Allowance for Bad Debts
Interest Receivable 1,700
Inventory 1/1/xxx
Building
Acc Repr-Building
41,500
50,000
Store Furniture & Fixtures 75,000
Acc Deer Store Furniture & Fixtures
Long Term Investments
20,000
Sales Salaries Payable
Dividends Payable
Income Tax Payable
Common Stock $10 par
$800
5,000
7,500
1,600
10,000
15,820
Retaining Earnings 1/1/xxx
100,000
7,100
Dividends
10,000
Sales
450,000
Sales Discount
4,500
Purchases
200,000
Purchases Discounts
3,000
Freight in
4,000
Misc General Expense
2,500
Officer Salaries Expense
55,000
Office Wage Expense
25,000
Misc Office Expense
3,000
Sales Salaries Expense
41,600
Misc Selling Expense
10,000
Rear Expense-Building
2,500
A) Ending Inventory 12/31/xx is $38,000
$679,320
$679,320
B) The loss on disposal is already NET of tax of $6,000, the operating loss is already NET of
tax of $4,000
C) The uninsured flood loss is already NET of tax of $2,000
DEB Expense-Store F & Fix 7,500
Bad Debt Expense
Interest Revenue
700
Loss on Disposal of Business Seg 30,000
Operating Loss on Business Seg 20,000
Income Tax Expense
15,820
Gain on Sale of Investment
Uninsured Flood Loss
5,000
5,000
2,000
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