John Holland, accountant for Sunny Pie Foods, was injured in

John Holland, accountant for Sunny Pie Foods, 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, 2012:

John Holland, accountant for Sunny Pie Foods, was injured in

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. Sunny Pie Foods issued 17,000 shares of common stock back in 2004 and held 7,000 shares as treasury stock all during the fiscal year 2012.

Requirement
1. Prepare a corrected Statement of Comprehensive Income for Sunny Pie Foods for the fiscal year ended June 30, 2012. Include net income, which lists all revenues together and all expenses together, as well as other comprehensive income, net of tax. After calculating comprehensive income, prepare the earnings-per-share section of thestatement.

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...


Transcribed Image Text:

Sunny Pie Foods, Inc. Income Statement June 30, 2012 Revenue and gains: Sales $894,000 Paid-in capital in excess of par-common Total revenues and gains 905,000 Expenses and losses: Cost of goods sold Selling expenses General expenses Sales returns Unrealized loss on available-for-sale investments Dividends paid Sales discounts Income tax expense S400,000 102,000 92,000 20,000 10,000 16,000 14,000 29,000 Total expenses and losses 683,000 Income from operations Other gains and losses: 222,000 Extraordinary gain Loss on discontinued operations 36,000 (25,000) Total other gains (losses) 11,000 $233,000 $ 23.30 Net income Earnings per share