Question

Carter Huntt, accountant for Southern Harvest Foods, Inc., was injured in an auto accident. While he was recuperating, another, inexperienced employee prepared the following income statement for the fiscal year ended June 30, 2014:


The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and some accounts do not belong on the income statement at all. Also, ­income tax (30%) has not been applied to all appropriate figures. Southern Harvest Foods issued 38,000 shares of common stock back in 2004 and held 8,000 shares as treasury stock all during the fiscal year 2014.

Requirement
1. Using the End-of-Chapter Summary Problem (pages 637–638) as an example, prepare a corrected Income Statement for Southern Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Use the single-step format, which lists all revenues together and all expenses together. Also prepare the earnings- per- share section of the statement.
2. Using Exhibit 11- 2 (p. 631) as an example, prepare a Statement of Comprehensive Income for Southern Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Start with net income as computed in Requirement1.


$1.99
Sales0
Views53
Comments0
  • CreatedJuly 25, 2014
  • Files Included
Post your question
5000