Question

Will Tompkins, accountant for Greene Harvest Foods, Inc., was injured in an auto accident. While he was recuperating, another, inexperienced employee prepared the following income statement for the fiscal year ended June 30, 2014:


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 (30%) has not been applied to all appropriate figures. Greene Harvest Foods issued 27,000 shares of common stock back in 2004 and held 7,000 shares as treasury stock all during the fiscal year 2014.

Requirement
1. Using the End-of-Chapter Summary Problem (pages 637– 638) as an example, prepare a corrected income statement for Greene Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Use the single- step format, which lists all revenues together and all expenses together. Also prepare the earnings-per-share section of the statement.
2. Using Exhibit 11- 2 (p. 631) as an example, prepare a Statement of Comprehensive Income for Greene Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Start with net income, as computed in Requirement 1.


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  • CreatedJuly 25, 2014
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