Presented below is information related to Farr Company. Retained earnings, December 31, 2010 ............. $ 650,000 Sales
Question:
Retained earnings, December 31, 2010 ............. $ 650,000
Sales ........................... 1,400,000
Selling and administrative expenses ............... 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) ....... 290,000
Cash dividends declared on common stock ........... .. 33,600
Cost of goods sold .................... 780,000
Gain resulting from computation error on depreciation
charge in 2009 (pre-tax) .................. 520,000
Other revenue ....................... 120,000
Other expenses ..................... 100,000
Instructions
Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.
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
Financial Accounting
ISBN: 978-0470507018
7th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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