Question

At the beginning of 2010, JR Company’s stockholders’ equity was as follows:
Common stock, $5 par .......... $35,000
Additional paid-in capital .......... 49,000
Retained earnings ............. 63,000
During 2010, the following events and transactions occurred:
1. The company earned sales revenues of $108,000. It incurred cost of goods sold of $62,000 and operating expenses of $12,000.
2. The company issued 1,000 shares of its $5 par common stock for $14 per share.
3. The company invested $30,000 in available-for-sale securities. At the end of the year, the securities had a market value of $35,000.
4. The company paid dividends of $6,000.
The income tax rate on all items of income is 30%.

Required
1. Prepare a 2010 income statement for JR Company which includes comprehensive income (ignore earnings per share).
2. Instead, prepare (a) a 2010 income statement (ignore earnings per share), and (b) a 2010 statement of comprehensive income.
3. Instead, prepare (a) a 2010 income statement (ignore earnings per share), and (b) a 2010 statement of changes in stockholders’ equity that includes comprehensive income.



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  • CreatedDecember 09, 2013
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