Presented below is information related to Tao Ltd. for the year 2019 (amounts in thousands). Instructions a.
Question:
Presented below is information related to Tao Ltd. for the year 2019 (amounts in thousands).
Instructions
a. Prepare an income statement for 2019. Assume that 60,000 ordinary shares are outstanding.
b. Prepare a retained earnings statement for 2019.
Transcribed Image Text:
HK$1,200,000 Write-off of inventory due to obsolescence 780,000 Depreciation expense omitted by accident in 2018 65,000 Interest expense 48,000 Cash dividends declared 20,000 Retained earnings at December 31, 2018 7,000 Effective tax rate of 34% on all items Net sales HK$ 80,000 Cost of goods sold Selling expenses Administrative expenses 40,000 50,000 45,000 Dividend revenue 980,000 Interest revenue
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a b TAO LTD Retained Earnings Statement For the Year Ended December 31 2019 Retained earnings Ja...View the full answer
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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