High Step Shoes had annual revenues of $189,000, expenses of $105,700, and dividends of $19,600 during the current year. The retained earnings account before closing had a balance of $301,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:
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- The adjusted trial balance of Pacific Scientific Corporation on December 31, 2024, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,160; cost of goods sold, $1,340; selling expense, $165; general and administrative expense, $155; interest expense, $30; and gain on sale of investments, $70. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare a multiple-step income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). PACIFIC SCIENTIFIC CORPORATION Income Statement For the Year Ended December 31, 2024 Gross profit Operating expenses: Total operating expenses Operating income Other income (expense): Total other income, net Income before income taxes Net incomeThe adjusted trial balance of Pacific Scientific Corporation on December 31, 2024, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,135; cost of goods sold, $1,310; selling expense, $150; general and administrative expense, $140; interest expense, $65; and gain on sale of investments, $90. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare a multiple-step income statement. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Sales revenue PACIFIC SCIENTIFIC CORPORATION Income Statement For the Year Ended December 31, 2024 Gross profit Operating expenses: Answer is not complete. Inventory Selling expense General and administrative expense Total operating expenses Operating income Other income (expense): Gain on sale of investments Interest expense Total other income, net Income before income taxes Income tax expense Net income 1,310 150 140 90 65 X 69 2,135…The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2024 ($ in thousands): sales revenue, $19,100; cost of goods sold, $8,100; selling expenses, $1,490; general and administrative expenses, $990; interest revenue, $250; interest expense, $220. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2024 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $410. Schembri also had an unrealized gain of $520 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories…
- You have been engaged to examine the books and other records of Golden Harvest Corporation, which started its operations in 2020. Your examination disclosed the following information: (1) Reported profit (loss) for the year: 2020 2021 2022 P(250,000) 320,000 380,000 (2) The company during the three-year period failed to recognize accruals and deferrals at yearend. The amounts omitted were as follows: Accrued expenses Accrued income Prepaid expenses Unearned income 2020 P20,000 32,000 12,000 15,000 2021 P25,000 30,000 18,000 10,000 2022 P30,000 26,000 24,000 8,000 (3) Goods which were in transit at yearend were omitted from the physical count. These goods had been property recorded as purchases during the year: P28,000 64,000 End of 2021 End of 2022 (4) The company purchased a machine costing P80,000 on August 31, 2020. The amount was recorded as expense. The company depreciates all its property, plant and equipment using the straight-line method, rounded to the nearest month and…The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities. Stockholders equity Connon stock, $5 per value. Retained earnings Total stockholders equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes (30%) Net income $24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 $ 290,000 320,000 610,000 $150,000. 733,000 883,000 $1,493,000 $ 2,290,000 1,220,000 1,070,000 580,000 490,000 32,000 458,000 137,400 $ 320,600The recent annual accounts of a manufacturing company reveal that at the end of its financial year the company had total debts of $66.001 1n, of which $45.00mn were current. Its total assets at that date were $104.00mn but only $15.00mn of these were current. A director is quoted as saying "We rn ed to set the recordstraight. Although it's true the reported debt is $66.00mn the real debt is only around $48.00mn, given that in the near future we expect cash inflows of $18.00mn. Its very easy to quote numbers but you have t know how to read the small print in order to interpret them.Comment on the director's statement. Is the company's tr ie debt at year-end only around $48.00mn?
- Carla Vista Corporation earned revenues of $223400, incurred expenses of $236700, and paid dividends of $3950 during the current year. After all closing entries have been posted, the balance in the Retained Earnings account will have O increased by $9350. O increased by $17250. O decreased by $13300. O decreased by $17250.Romney's Marketing Company has the following adjusted trial balance at the end of the current year. The company issued 420 shares at the end of the year for $4,200 cash (for a total of 840 shares at the end of the year). The effect of this transaction is included below. Cash Accounts receivable Interest receivable Prepaid insurance Notes receivable (long-term) Equipment Accumulated depreciation Accounts payable Accrued expenses payable Income taxes payable Deferred rent revenue Contributed capital (840 shares) Retained earnings Dividends declared Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Income tax expense Total Debit $ 2,700 Credit 3,400 220 2,800 4,000 17,090 $ 4,200 3,600 4,520 3,300 1,100 4,900 3,440 720 43,300 220 1,400 20,700 2,400 500 1,350 10,200 3,900 $69,260 $69,260 Prepare a statement of financial position in good form at the end of the current year.ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of commonstock outstanding for the year. The following income statement account balances are availablefor ERS at the end of 2019.Advertising expense $24,200Depreciation expense(on service van) 16,250Income taxes expense 15,150Insurance expense 11,900Interest expense 10,100Rent expense 58,400Salaries expense (foradministrative personnel) $195,600Service revenue 933,800Supplies expense 66,400Utilities expense 26,100Wages expense (for servicetechnicians) 448,300Required:1. Prepare a single-step income statement for ERS for 2019.2. CONCEPTUAL CONNECTION Compute net profit margin for ERS. If ERS is able toincrease its service revenue by $100,000, what should be the effect on future income?
- The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan. 29 Received 40% of the $17,000 balance owed by Jankovich Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18 Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,560 cash in full payment of Karm’s account. Aug. 9 Wrote off the $22,380 balance owed by Golden Stallion Co., which has no assets. Nov. 7 Reinstated the account of Wiley Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $13,220 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Claire Moon Inc., $22,860; Jet Set Co., $15,320; Randall Distributors, $41,460; Harmonic Audio, $18,890. 31 Based on an analysis of the $2,740,000 of accounts receivable, it was estimated that $113,330 will…At the beginning of the year, Shinedown, Corporation, had a long - term debt balance of $47, 505. During the year, the company repaid a long-term loan in the amount of $13, 680. The company paid $5, 365 in interest during the year, and opened a new long - term loan for $12, 015. How much is the ending long-term debt account on the company's balance sheet?The adjusted trial balance of Amborse Corporation at December 31 shows that sales revenue for the year was $520,000 and other revenue was $49,000. Cost of goods sold for that same period was $290,000, while other expenses totaled $190,000. The corporation declared and paid dividends of $17,000 during the year. The balance of retained earnings before closing entries was $460,000. 1. Prepare the closing entries for revenues, expenses, and dividends for the year. 2. What was net income for the year? 3. What is the ending balance of retained earnings after the closing entries are posted?