Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2010 an analysis of the accounts and discussions with company officials revealed the following information: Sales Purchase discounts Purchases Earthquake loss (net of tax) (extraordinary item) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation Dividend revenue Inventory, January 1, 2010 Inventory, December 31, 2010 Unearned service revenue Accrued interest payable Land Patents Retained earnings, January 1, 2010 Interest expense General and administrative expenses Dividends declared Allowance for doubtful accounts Notes payable (maturity 7/1/13) Machinery and equipment Materials and supplies Accounts payable Required: $1,100,000 18,000 642,000 42,000 128,000 60,000 90,000 200,000 180,000 8,000 152,000 125,000 4,400 1,000 The amount of income taxes applicable to ordinary income was $48,600, excluding the tax effect of the earthquake loss which amounted to $18,000. (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement. 370,000 100,000 290,000 17,000 150,000 29,000 5,000 200,000 450,000 40,000 60,000
Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2010 an analysis of the accounts and discussions with company officials revealed the following information: Sales Purchase discounts Purchases Earthquake loss (net of tax) (extraordinary item) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation Dividend revenue Inventory, January 1, 2010 Inventory, December 31, 2010 Unearned service revenue Accrued interest payable Land Patents Retained earnings, January 1, 2010 Interest expense General and administrative expenses Dividends declared Allowance for doubtful accounts Notes payable (maturity 7/1/13) Machinery and equipment Materials and supplies Accounts payable Required: $1,100,000 18,000 642,000 42,000 128,000 60,000 90,000 200,000 180,000 8,000 152,000 125,000 4,400 1,000 The amount of income taxes applicable to ordinary income was $48,600, excluding the tax effect of the earthquake loss which amounted to $18,000. (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement. 370,000 100,000 290,000 17,000 150,000 29,000 5,000 200,000 450,000 40,000 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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