Jim Heller, accountant for Perfect Pie Foods, was injured in an auto accident. Another employee prepared the

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Jim Heller, accountant for Perfect Pie Foods, was injured in an auto accident. Another employee prepared the following income statement for the fiscal year ended June 30, 2010:

Jim Heller, accountant for Perfect Pie Foods, was injured in

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 (40%) has not been applied to all appropriate figures. Perfect Pie Foods issued 24,000 shares of common stock back in 2004 and held 4,000 shares as treasury stock all during the fiscal year 2010.

Requirement
1. Prepare a corrected statement of income (single-step, which lists all revenues together and all expenses together), including comprehensive income, for fiscal year 2010. Include earnings pershare.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For  book-img-for-question

Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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