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The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as 22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800. Revenues: Sales Gain on sale of equipment Interest income Weatherford International Inc. Income Statement December 31, 2020 Gain on sale of plant Operating profit on discontinued operation Expenses: Cost of goods sold Selling and administrative expenses Sales discounts Loss on sale of discontinued operation Dividends Profit Earnings per share $1,187,000 15,800 7,000 143,000 29,740 $1,382,540 $ 362,000 187,000 12,460 37,400 134,000 732,860 $ 649,680 $ 5.70 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)

The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as 22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800. Revenues: Sales Gain on sale of equipment Interest income Weatherford International Inc. Income Statement December 31, 2020 Gain on sale of plant Operating profit on discontinued operation Expenses: Cost of goods sold Selling and administrative expenses Sales discounts Loss on sale of discontinued operation Dividends Profit Earnings per share $1,187,000 15,800 7,000 143,000 29,740 $1,382,540 $ 362,000 187,000 12,460 37,400 134,000 732,860 $ 649,680 $ 5.70 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)

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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The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as 22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800. Weatherford International Inc. Income Statement December 31, 2020 Revenues: Sales Gain on sale of equipment Interest income Gain on sale of plant Operating profit on discontinued operation Expenses: Cost of goods sold Selling and administrative expenses Sales discounts Loss on sale of discontinued operation Dividends Profit Earnings per share. $1,187,000 15,800 7,000 $ 143,000 29,740 $1,382,540 362,000 187,000 12,460 37,400 134,000 $ 732,860 649,680 5.70 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)
Transcribed Image Text:The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 35%). The company had 114,000 common shares issued and outstanding throughout the year, as well as 22,800 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $335,800. Weatherford International Inc. Income Statement December 31, 2020 Revenues: Sales Gain on sale of equipment Interest income Gain on sale of plant Operating profit on discontinued operation Expenses: Cost of goods sold Selling and administrative expenses Sales discounts Loss on sale of discontinued operation Dividends Profit Earnings per share. $1,187,000 15,800 7,000 $ 143,000 29,740 $1,382,540 362,000 187,000 12,460 37,400 134,000 $ 732,860 649,680 5.70 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)
WEATHERFORD INTERNATIONAL INC. Income Statement For Year Ended December 31, 2020 Net sales Cost of goods sold Gross profit Operating profit from discontinued operation Other revenues and expenses: Interest income Gain on sale of equipment Gain on sale of plant Loss from continuing operations before income tax Income tax expense Profit from continuing operations Discontinued operations: Earnings per share of common shares outstanding Profit from continuing operations Loss from discontinued operations Profit
Transcribed Image Text:WEATHERFORD INTERNATIONAL INC. Income Statement For Year Ended December 31, 2020 Net sales Cost of goods sold Gross profit Operating profit from discontinued operation Other revenues and expenses: Interest income Gain on sale of equipment Gain on sale of plant Loss from continuing operations before income tax Income tax expense Profit from continuing operations Discontinued operations: Earnings per share of common shares outstanding Profit from continuing operations Loss from discontinued operations Profit
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