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Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,217,000 Discontinued operations loss (net of tax) 60,900 Selling expenses 129,600 Cash 61,500 Accounts receivable 88,800 Common stock 200,000 Cost of goods sold 704,000 Accumulated depreciation-machinery 180.400 Dividend revenue 8,200 Unearned service revenue 4,600 Interest payable 1,100 Land 380,000 Patents 101,000 Retained earnings, January 1, 2020 304,040 Interest expense 19,800 Administrative expenses 172,600 Dividends declared 22,400 Allowance for doubtful accounts 4,900 Notes payable (maturity 7/1/23) 191,000 Machinery 451,000 Materials 41,400 Accounts payable 62,000 e amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which punted to $26,100.

Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,217,000 Discontinued operations loss (net of tax) 60,900 Selling expenses 129,600 Cash 61,500 Accounts receivable 88,800 Common stock 200,000 Cost of goods sold 704,000 Accumulated depreciation-machinery 180.400 Dividend revenue 8,200 Unearned service revenue 4,600 Interest payable 1,100 Land 380,000 Patents 101,000 Retained earnings, January 1, 2020 304,040 Interest expense 19,800 Administrative expenses 172,600 Dividends declared 22,400 Allowance for doubtful accounts 4,900 Notes payable (maturity 7/1/23) 191,000 Machinery 451,000 Materials 41,400 Accounts payable 62,000 e amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which punted to $26,100.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,217,000 Discontinued operations loss (net of tax) 60,900 Selling expenses 129,600 Cash 61.500 Accounts receivable 88,800 Common stock 200,000 Cost of goods sold 704,000 Accumulated depreciation-machinery 180,400 Dividend revenue 8,200 Unearned service revenue 4,600 Interest payable 1,100 Land 380,000 Patents 101,000 Retained earnings, January 1, 2020 304,040 Interest expense 19,800 Administrative expenses 172,600 Dividends declared 22,400 Allowance for doubtful accounts 4,900 Notes payable (maturity 7/1/23) 191,000 Machinery 451,000 Materials 41,400 Accounts payable 62,000 The amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which amounted to $26,100.
Transcribed Image Text:Sheridan Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,217,000 Discontinued operations loss (net of tax) 60,900 Selling expenses 129,600 Cash 61.500 Accounts receivable 88,800 Common stock 200,000 Cost of goods sold 704,000 Accumulated depreciation-machinery 180,400 Dividend revenue 8,200 Unearned service revenue 4,600 Interest payable 1,100 Land 380,000 Patents 101,000 Retained earnings, January 1, 2020 304,040 Interest expense 19,800 Administrative expenses 172,600 Dividends declared 22,400 Allowance for doubtful accounts 4,900 Notes payable (maturity 7/1/23) 191,000 Machinery 451,000 Materials 41,400 Accounts payable 62,000 The amount of income taxes applicable to income was $59,760, excluding the tax effect of the discontinued operations loss which amounted to $26,100.
(a) Prepare a multiple-step income statement. Sheridan Corporation INCOME STATEMENT For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit/ (Loss) Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income from Operations Other Revenue and Expense Interest Expense Dividend Revenue Income Before Income Taxes Income Taxes Income from Continuing Operations Discontinued Operations Loss, Net of Tax Net Income / (Loss) Per Share of Common Stock Income from Continuing Operations 2$ Discontinued Operations Loss, Net of Tax Net Income/ (Loss)
Transcribed Image Text:(a) Prepare a multiple-step income statement. Sheridan Corporation INCOME STATEMENT For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit/ (Loss) Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income from Operations Other Revenue and Expense Interest Expense Dividend Revenue Income Before Income Taxes Income Taxes Income from Continuing Operations Discontinued Operations Loss, Net of Tax Net Income / (Loss) Per Share of Common Stock Income from Continuing Operations 2$ Discontinued Operations Loss, Net of Tax Net Income/ (Loss)
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An income statement is a financial statement which shows a company's income and expenses. It also indicates the company is profitable or going bankrupt over a specific time period. The income statement, along with the balance sheet and cash flow statement, helps you understand the financial health of your company. The income statement is also known as a profit and loss statement, a statement of operations, a financial result or income statement, or an earnings statement. A profit and loss statement helps business owners determine whether they can generate profitability by increasing revenues, decreasing costs, or doing both.

 

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