BIB Corporation's capital structure consists of 250,000 shares of common stock. At December 31, 2011, an analysis
Question:
BIB Corporation's capital structure consists of 250,000 shares of common stock. At December 31, 2011, an analysis of the accounts and discussions with company officials revealed the following information:
Accounts payable .........................................................$300,000
Accrued salary payable ......................................................5,000
Accumulated depreciation .............................................900,000
Allowance for doubtful accounts .....................................25,000
Bonds payable (maturity July 1, 2012) .......................2,261,000
Cash ...............................................................................300,000
Common stock ............................................................1,000,000
Copyright .......................................................................500,000
Dividend revenue ............................................................40,000
Dividends declared .......................................................145,000
Earthquake loss (net of tax) (extraordinary item)..........210,000
General and administrative expenses ............................750,000
Interest expense............................................................... 50,000
Land ............................................................................1,850,000
Loss on disposal of assets................................................. 35,000
Materials and supplies ................................................... 200,000
Merchandise Inventory, December 31, 2011...................625,000
Merchandise Inventory, January 1, 2011 ...................... 760,000
Notes receivable ............................................................ 450,000
Plant and equipment ................................................... 2,250,000
Purchase discounts ...........................................................90,000
Purchases .....................................................................3,210,000
Retained earnings, January 1, 2011 ............................ 1,450,000
Revenue ........................................................................5,500,000
Selling expenses ..............................................................640,000
Unearned service revenue .................................................22,000
The amount of income taxes applicable to ordinary income was $243,000, excluding the tax effect of the earthquake loss, which amounted to $90,000.
Prepare a Multiple-Step Income Statement, including Earnings per Share
Capital StructureCapital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy