(Multi-step Income, Retained Earnings) Presented below is information related to American Horse Company for 2004. Prepare a...
Question:
(Multi-step Income, Retained Earnings) Presented below is information related to American Horse Company for 2004. Prepare a multi-step income statement and a retained earnings statement. American Horse Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, American Horse sold the wholesale operations to Rogers Company. During 2004, there were 300,000 shares of common stock outstanding allyear.
Retained earnings balance, January 1, 2004 Sales for the year Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill (not tax deductible) Income taxes for 2004 Gain on the sale of investments (normal recurring) Loss due to flood damage-extraordinary item (net of tax) Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $980,000 25,000,000 17,000,000 70,000 4,700,000 820,000 905,000 110,000 390,000 440,000 90,000 250,000 70,000
Step by Step Answer:
American Horse Company Income Statement For the Year Ended December 31 2007 Sales Cost of goods sold ...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
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