The Houston Manufacturing Company presents the following partial lists of account balances, after adjustments, as of December 31, 2016 Selling Expenses Administrative Expenses het Sales Revenue Interest Revenue Las on Sale of Factory Equipment Cost of Goods Sold CHAPTER 4 HOMEWORK PROBLEM 1 Assume a 30% tax rate $70 50 460 Retained Earnings, January 1, 2016 Cividend Revenue Common Stock, $10 Par impairment loss on patent The following information is also available, but is not reflected in the preceding accounts 1. The company sold Division E (a component of the company) on August 1, 2016. This action reflects a strategic shift for the company. During 2016, Division E incurred a pretax loss from operations of $20. However, because the acquiring company could vertically integrate Division E into its facilities, there was a 540 pretax gain on the sale REQUIRED 4 230 200 2 The common stock was outstanding for the entire year. A cash dividend on $1 per share was declared and paid in 2016 200 30 Prepare a 2016 multi step income statement for the Houston Manufacturing Company 2 Prepare a 2016 single-step income statement for the Housten Manufacturing Compan
The Houston Manufacturing Company presents the following partial lists of account balances, after adjustments, as of December 31, 2016 Selling Expenses Administrative Expenses het Sales Revenue Interest Revenue Las on Sale of Factory Equipment Cost of Goods Sold CHAPTER 4 HOMEWORK PROBLEM 1 Assume a 30% tax rate $70 50 460 Retained Earnings, January 1, 2016 Cividend Revenue Common Stock, $10 Par impairment loss on patent The following information is also available, but is not reflected in the preceding accounts 1. The company sold Division E (a component of the company) on August 1, 2016. This action reflects a strategic shift for the company. During 2016, Division E incurred a pretax loss from operations of $20. However, because the acquiring company could vertically integrate Division E into its facilities, there was a 540 pretax gain on the sale REQUIRED 4 230 200 2 The common stock was outstanding for the entire year. A cash dividend on $1 per share was declared and paid in 2016 200 30 Prepare a 2016 multi step income statement for the Houston Manufacturing Company 2 Prepare a 2016 single-step income statement for the Housten Manufacturing Compan
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:CHAPTER 4 HOMEWORK PROBLEM
The Houston Manufacturing Company presents the following partial lists of account balances, after adjustments, as of
December 31, 2016:
Selling Expenses
Administrative Expenses
het Sales Revenue
Interest Revenue
Loss on Sale of Factory Equipment
Cost of Goods Sold
Retained Earnings, January 1, 2016
Evidend Revenue
Common Stock, $10 Par
Impairment loss on patent
$70
50
460
3. Assume a 30% tax rate
3
4
230
200
5
200
30
hefolowing information is also available, but is not reflected in the preceding accounts:
1. The company sold Division E (a component of the company) on August 1, 2016. This action reflects a strategic
shift for the company. During 2016, Division E incurred a pretax loss from operations of $20. However, because
the acquiring company could vertically integrate Division E into its facilities, there was a 540 pretax gain on the
sale
2. The common stock was outstanding for the entire year. A cash dividend on $1 per share was declared and paid
in 2016
REQUIRED:
1 Prepare a 2016 multiple step income statement for the Houston Manufacturing Company
2 Prepare a 2016 single-step income statement for the Houston Manufacturing Company
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