Question Three: The following income statement was prepared for RAT Co. for the year ended 31/12/2015....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question Three: The following income statement was prepared for RAT Co. for the year ended 31/12/2015. Sales (640,000) Cost of goods old 500,000 Selling expenses 36000 Administrative expenses 30000 Other expenses 35000 Other income (18000) Income before tax 57000 Tax 19400 Net income 37600 Beginning retained earning 134000 Dividend 12200 Ending retained earning 159400 Outstanding ordinary shares 200,000shares The following information is available for you: a) Beginning inventory 100, 000, purchases 600,000, fright 30000, discount on purchases 42000 and ending inventory 188,000 b) Selling expenses include sales discount 20000 and freight on sales 20009. 3) Administrative expenses include 5000 correction of errors for depreciation expense resulted from change in useful life for 2014. 4) Other expenses include 15000 from looses of discontinuing operation. 5) the company changed its inventory method during 2015 and reflected the change in income statement for the year, but didn't take in consideration the effect of change in principle for the year 2014 which understate the income for 2014 (4000$) Required: Prepare multiple step income statement and retained earnings 31/12/2015 for the company? Question Three: The following income statement was prepared for RAT Co. for the year ended 31/12/2015. Sales (640,000) Cost of goods old 500,000 Selling expenses 36000 Administrative expenses 30000 Other expenses 35000 Other income (18000) Income before tax 57000 Tax 19400 Net income 37600 Beginning retained earning 134000 Dividend 12200 Ending retained earning 159400 Outstanding ordinary shares 200,000shares The following information is available for you: a) Beginning inventory 100, 000, purchases 600,000, fright 30000, discount on purchases 42000 and ending inventory 188,000 b) Selling expenses include sales discount 20000 and freight on sales 20009. 3) Administrative expenses include 5000 correction of errors for depreciation expense resulted from change in useful life for 2014. 4) Other expenses include 15000 from looses of discontinuing operation. 5) the company changed its inventory method during 2015 and reflected the change in income statement for the year, but didn't take in consideration the effect of change in principle for the year 2014 which understate the income for 2014 (4000$) Required: Prepare multiple step income statement and retained earnings 31/12/2015 for the company?
Expert Answer:
Answer rating: 100% (QA)
Multistep Income statement For the year ending 31122015 100000 6... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
Students also viewed these accounting questions
-
The following income statement was prepared for Cool Pool Supplies for the year 2013: COOL POOL SUPPLIES Income Statement For the Year Ended December 31, 2013 Sales ................ $280,000 Cost of...
-
The following income statement was prepared for Ludlum, Clancy, Follet & Associates, a partnership comprised of four partners who share income equally. The adjusted cost base to Mr. Clancy of his...
-
The following income statement was prepared by an office clerk hired for July. As the accounting supervisor, you recognize that it is incorrect and prepare a corrected multi-step income statement....
-
Selenic acid, H2SeO4, is a crystalline substance and a strong acid. Write the electron-dot formula of selenic acid.
-
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%. a....
-
Carry out an analysis like that shown in Fig. 9.26 and show how many peaks the signal from (b) would be split into if Jab = 2Jbc and if Jab = Jbc. (Hint: In both cases peaks will fall on top of peaks...
-
Tim Walters, an attorney, had a law corporation, Tim Walters, Attorney, Inc., that began the year with total assets of \($110,000,\) total liabilities of \($80,000,\) and stockholders equity of...
-
In 1997, Bobby Randall was hired at Wal-Mart. At the time, Randall was not a convicted felon but had been previously convicted three times on misdemeanor charges for indecent exposure. At the time of...
-
For a generic 0.25 micron CMOS with the following parameters, determine the size of the transistor to produce a symmetrical VTC. Assume VDD = 2.5V. Please provide two pair of these transistors size...
-
Q10. Today is January 2,2008. The LIBOR curve (continuously compounded) is shown in the first column of Table 5.13. 2 Table 5.13 The LIBOR Curve: January, 2008-October, 2008 Months 1 2 3 4 5 2-Jan...
-
Gate AB is immersed in oil (SG = 0.82) and hinged at point A. The hinge is blocked, so that the gate cannot be opened. Length AB and width of the gate are 1.2m and 0.8m respectively. Assume the...
-
What itre the reengineering tools suggested in the textbook?
-
Fill in the blanks: a. The final. on whether the system is correctly and ready for implemen- tation is the b. The key input in to the phase is the phase. c. The is completed d. Once the. complete.....
-
Consider a preemptive priority system. The three tasks in the system, time needed to complete, and priority are given below: If the tasks arrive in the order 1 , 2 , 3 , what is the time needed to...
-
A preemptive foreground/background system has three interrupt - driven task cycles, described below (with context switch time ignored): (a) Draw an execution time line for this system. (b) What is...
-
Make a diagram like Figure 11-18 for the (4n + 1) decay chain that begins with 237 Np, a nuclide that is no longer present in nature. N 140 135 130 125 Thorium series (4n) 212pb 208 TI 80 216Po B- a ...
-
2. (20 pts) An electric heating element in a residential hot-water heater can be approximated as a D = 10 mm diameter horizontal cylinder with length L = 0.5 m. When powered, the element produces Q =...
-
Factor and simplify, if possible. Check your result using a graphing calculator. 3 cot 2 + 6 cot + 3
-
Michaels Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2013, its first year of operations,...
-
For each of the following fraudulent acts, describe one or more internal control procedures that could have prevented (or helped prevent) the problems. a. Everyone in the office has noticed what a...
-
Determining the cost of inventory Required For each of the following cases determine the ending balance in the inventory account. a. Monas Dress Shop had a beginning balance in its inventory account...
-
Describe American styles of nonverbal communication. Are there different styles of nonverbal communication in different areas of the United States?
-
Discuss the relationship between language and culture.
-
In the 1890 s, L. L. Zamenhof believed that different language was a key source of strife between people. He created Esperanto, which he hoped would be a universal language, to foster peace and...
Study smarter with the SolutionInn App