Problem: Remesh Corporation prepared the following income statement and statement of retained earnings for the year ended December 31, 2021. Remesh Corporation December 31, 2021 Expense and Profit Statement Dollars in thousands Sales (net) $206,000 Less: Selling Expenses (20,600) Net Sales $185,400 Add: Interest Revenue 2,400 Add: Gain on sale of equipment 3,600 Gross Sales Revenue $191,400 Less: Cost of operations: Cost of Goods Sold $126,100 Correction of overstatement in last years income because of error $5,500 (net of tax credit) $3850 Dividend cost ($0.50 per share for 8k common shares) $4000 Unusual loss due to a hurricane, $6,400 (net of tax credit) $1,920 ($135,870) Taxable Revenues $55,530 Less: Income tax on income from continuing operations $16,659 Net income $38871 Miscellaneous Deductions Loss from operations of discontinued Division L. $3,600 (net of tax credit) $1,080 Administrative Expense $17,650 ($18,730) Net Revenues $20,141 Remesh Corporation Retained Revenues Statement For Year Ended December 31, 2021 Dollars in thousands Beginning retained earnings $59,300 Add: Gain on sale of Division, $4,500 (net of taxes) $3,150 Recalculated retained earnings $20,141 $82,591 Less: Interest Expense (-$3,310) Ending retained earnings $79,281 The preceding account balances are correct but have been incorrectly classified in certain instances assume income tax rate of 30 for all items. Can I get help with preparing a corrected 2021 “multi-step” income statement with EPS disclosure and a 2021 retained earnings statement and in good form? And preparing the 2021 retained earnings statement with correct balances?
Problem:
Remesh Corporation prepared the following income statement and statement of
Remesh Corporation
December 31, 2021
Expense and Profit Statement
Dollars in thousands
|
Sales (net) |
|
$206,000 |
|
Less: Selling Expenses |
|
(20,600) |
|
Net Sales |
|
$185,400 |
|
Add: Interest Revenue |
|
2,400 |
|
Add: Gain on sale of equipment |
|
3,600 |
|
Gross Sales Revenue |
|
$191,400 |
|
Less: Cost of operations: |
|
|
|
Cost of Goods Sold |
$126,100 |
|
|
Correction of overstatement in last years income because of error $5,500 (net of tax credit) |
$3850 |
|
|
Dividend cost ($0.50 per share for 8k common shares) |
$4000 |
|
|
Unusual loss due to a hurricane, $6,400 (net of tax credit) |
$1,920 |
($135,870) |
|
Taxable Revenues |
|
$55,530 |
|
Less: Income tax on income from continuing operations |
|
$16,659 |
|
Net income |
|
$38871 |
|
Miscellaneous Deductions |
|
|
|
Loss from operations of discontinued Division L. $3,600 (net of tax credit) |
$1,080 |
|
|
Administrative Expense |
$17,650 |
($18,730) |
|
Net Revenues |
|
$20,141 |
|
|
|
|
Remesh Corporation
Retained Revenues Statement
For Year Ended December 31, 2021
Dollars in thousands
|
Beginning retained earnings |
$59,300 |
|
Add: Gain on sale of Division, $4,500 (net of taxes) |
$3,150 |
|
Recalculated retained earnings |
$20,141 |
|
|
$82,591 |
|
Less: Interest Expense |
(-$3,310) |
|
Ending retained earnings |
$79,281 |
|
|
|
The preceding account balances are correct but have been incorrectly classified in certain instances assume income tax rate of 30 for all items.
Can I get help with preparing a corrected 2021 “multi-step” income statement with EPS disclosure and a 2021 retained earnings statement and in good form? And preparing the 2021 retained earnings statement with correct balances?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
