The following accounts are taken from the accounting records of Dory Company at December 31, 2020 after adjustments: Sales revenue $249,000 Sales salaries expense 14,000 Administrative salaries expense 15,000 Depreciation expense: equipment 8,000 Purchases 160,000 Purchases returns 2,000 Freight-in 10,000 Inventory, 1/1/20 80,000 Retained earnings, 1/1/20 60,000 In addition, the following information is available: • The inventory on December 31, 2020, was $75,000. • Ten thousand shares of common stock were outstanding during the entire year. Dory paid dividends of $1.00 per share. • At the end of October, Dory sold its unprofitable restaurant component. From January through October, the component had incurred an operating loss (pretax) of $14,000. The sale was made at a loss (pretax) of $8,000. • The applicable tax rate is 30%. Required: Prepare a 2020 multiple-step income statement for the Dory Company.
The following accounts are taken from the accounting records of Dory Company at December 31, 2020 after adjustments: Sales revenue $249,000 Sales salaries expense 14,000 Administrative salaries expense 15,000 Depreciation expense: equipment 8,000 Purchases 160,000 Purchases returns 2,000 Freight-in 10,000 Inventory, 1/1/20 80,000 Retained earnings, 1/1/20 60,000 In addition, the following information is available: • The inventory on December 31, 2020, was $75,000. • Ten thousand shares of common stock were outstanding during the entire year. Dory paid dividends of $1.00 per share. • At the end of October, Dory sold its unprofitable restaurant component. From January through October, the component had incurred an operating loss (pretax) of $14,000. The sale was made at a loss (pretax) of $8,000. • The applicable tax rate is 30%. Required: Prepare a 2020 multiple-step income statement for the Dory Company.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 53BE
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The following accounts are taken from the accounting records of Dory Company at December 31, 2020 after adjustments:
| Sales revenue | $249,000 |
| Sales salaries expense | 14,000 |
| Administrative salaries expense | 15,000 |
| 8,000 | |
| Purchases | 160,000 |
| Purchases returns | 2,000 |
| Freight-in | 10,000 |
| Inventory, 1/1/20 | 80,000 |
| 60,000 |
In addition, the following information is available:
| • | The inventory on December 31, 2020, was $75,000. |
| • | Ten thousand shares of common stock were outstanding during the entire year. Dory paid dividends of $1.00 per share. |
| • | At the end of October, Dory sold its unprofitable restaurant component. From January through October, the component had incurred an operating loss (pretax) of $14,000. The sale was made at a loss (pretax) of $8,000. |
| • | The applicable tax rate is 30%. |
Required:
| Prepare a 2020 multiple-step income statement for the Dory Company. |
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