None Shown below is an income statement for 2016 that was prepared by a poorly trainedbookkeeper of Hutton Corporation.Hutton CorporationINCOME STATEMENTDecember 31, 2016Sales revenue$945,000Investment revenue19,500Cost of merchandise sold(408,500)Selling expenses(145,000)Administrative expense(285,000)Interest expense(13,000)Income before special items 113,000Special itemsLoss on disposal of a component of the business (30,000)Net federal income tax liabilityNet income(24,900)$58,100Prepare a multiple-step income statement, in good form, for 2016 for Hutton Corporationthat is presented in accordance with generally accepted accounting principles (includingformat and terminology). Hutton Corporation has 25,000 shares of common stockoutstanding and has a 30% federal income tax rate on all tax related items. Round allearnings per share figures to the nearest cent.

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

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Shown below is an income statement for 2016 that was prepared by a poorly trained bookkeeper of Hutton Corporation. Hutton Corporation INCOME STATEMENT December 31, 2016 Sales revenue $945,000 Investment revenue 19,500 Cost of merchandise sold (408,500) Selling expenses (145,000) Administrative expense (285,000) Interest expense (13,000) Income before special items 113,000 Special items Loss on disposal of a component of the business (30,000) Net federal income tax liability Net income (24,900) $58,100 Prepare a multiple-step income statement, in good form, for 2016 for Hutton Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Hutton Corporation has 25,000 shares of common stock outstanding and has a 30% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.
Shown below is an income statement for 2025 that was prepared by a poorly trained bookkeeper of Sheridan Corporation. Sheridan Corporation Sales revenue Investment revenue Cost of goods sold Selling expenses Administrative expenses Interest expense Income before special items INCOME STATEMENT December 31, 2025 $826,000 21,700 (405,000) (145,400) (192,400) (13,700) 91,200 Special items Loss on disposal of a component of the business (43,000) Net federal income tax liability Net income (9,640) $38,560 Prepare a multiple-step income statement for 2025 for Sheridan Corporation according to generally accepted accounting principles (including format and terminology). Sheridan Corporation has 50,000 shares of common stock outstanding and has a 20% federal income tax. (List Other revenues before Other expenses. Round per share values to 2 decimal places, eg. $2.50)
The trainee accountant for Basu Production was prepared improperly the following income statement for the year 2020. INCOME STATEMENT December 31, 2020 BASU PRODUCTION Sales revenue $942.000 Interest revenue 24.500 Cost of merchandise sold (397.500) Selling expenses (225.000) Administrative expense (183.000) Interest expense (12.000) Income before special component 149.000 Special component Loss on disposal of a component of the business (50,000) Net income tax liability (19.800) Net income $79.200 Instructions: Using the information above, prepare an income statement for Basu Production for the year 2020 that is presented in accordance with IFRS including format and terminology. Basu has a 20% income tax rate on all tax related items and has 60.000 ordinary shares outstanding. (Round all EPS-earnings per share figures to the nearest cent.)
Presented below are selected accounts of Novak Company at December 31, 2017. Inventory (finished goods) $ 53,500 Cost of Goods Sold $2,192,400 Unearned Service Revenue 95,200 Notes Receivable 41,000 Equipment 257,100 Accounts Receivable 161,020 Inventory (work in process) 36,000 Inventory (raw materials) 182,280 Cash (not including restricted cash) 43,800 Supplies Expense 65,490 Debt Investments (trading) 39,500 Allowance for Doubtful Accounts 11,290 Customer Advances 53,200 Licenses 16,890 Restricted Cash for Plant Expansion 58,300 Additional Paid-in Capital 88,040 Treasury Stock 22,320 The following additional information is available. 1. Inventories are valued at lower-of-cost-or-market using LIFO. 2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $47,568. 3. The short-term investments have a fair value of $29,730. 4. The notes receivable are due April 30, 2019, with interest receivable every April 30. The notes bear interest at 6%.…
(Error Analysis) The before-tax income for Lonnie Holdiman Co. for 2017 was $101,000 and $77,400 for 2018. However, the accountant noted that the following errors had been made:1. Sales for 2017 included amounts of $38,200 which had been received in cash during 2017, but for which the related products were delivered in 2018. Title did not pass to the purchaser until 2018.2. The inventory on December 31, 2017, was understated by $8,640.3. The bookkeeper in recording interest expense for both 2017 and 2018 on bonds payable made the following entry on an annual basis.Interest Expense 15,000Cash 15,000The bonds have a face value of $250,000 and pay a stated interest rate of 6%. They were issued at a discount of $15,000 on January 1, 2017, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.)4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2017 and 2018. Repairs in the amount of $8,500 in 2017 and…
Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2017 included the following: Debit Credit Sales revenue $280,000 Cost of goods sold $170,000 Administrative expenses 40,000 Loss on disposal of equipment 18,000 Sales commission expense 16,000 Interest revenue 10,000 Freight-out 6,000 Loss from discontinued operations 24,000…
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The following information is available for Splish Brothers Inc. for the year ended December 31, 2017: Loss on discontinued operations $74,000 Retained earnings January 1, 2017 $1,380,000 Rent revenue 89,000 Selling expenses 870,000 Income tax applicable to loss on discontinued Income tax applicable to continuing operations 295,000 27,000 operations Administrative expenses 524,000 Cost of goods sold 1,628,000 Loss on write-down of inventory 42,000 Sales revenue 3,750,000 Gain on sale of equipment 39,000 Cash dividends declared 219,000 Unrealized gain on available-for-sale 33,000 Interest expense 60,000 securities 200,000 shares were outstanding during all of 2017. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.45.) Splish Brothers Inc. Income Statement For the Year Ended December 31, 2017 Sales Revenue 2$ Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Administrative Expenses %24
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The following balances were reported by BEE Co. at December 31, 2017 and 2016: 12/31/2016 12/31/2017 Inventory $260,000 $290,000 A/P $75,000 $50,000 BEE Co. paid suppliers $490,000 during 2017. How much is the cost of goods sold in 2017?
The following information is available for Kingbird Inc. for the year ended December 31, 2017: Loss on discontinued operations $65,000 Retained earnings January 1, 2017 $1,120,000 Rent revenue 85,000 Selling expenses 860,000 Income tax applicable to continuing operations 288,000 Income tax applicable to loss on discontinued operations 22,000 Administrative expenses 500,000 Cost of goods sold 1,620,000 Loss on write-down of inventory 32,000 Sales revenue 3,715,000 Gain on sale of equipment 30,000 Cash dividends declared 210,000 Unrealized gain on available-for-sale securities 20,000 Interest expense 45,000 200,000 shares were outstanding during all of 2017. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.45.)
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Presented below is information related to Ivan Calderon Corp. for the year 2025. Net sales $1,560,000 Cost of goods sold 936,000 Selling expenses 78,000 Administrative expenses 57,600 Dividend revenue 24,000 Interest revenue 8400 Write-off of inventory due to obsolescence $96,000 Depreciation expense omitted by accident in 2024 66000 Casualty loss 60,000 Cash dividends declared 54,000 Retained earnings at December 31, 2024 1,176,000 Effective tax rate of all items 20% Instructions Prepare a multiple-step income statement for 2025. Assume that 72960 shares of common stock are outstanding for the entire year. Prepare a separate retained earnings statement for 2025.

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