a. Logan Corp.?s trial balance of income statement accounts for the year ended December 31, 2012 included the following:

January Other information:

Logan?s income tax rate is 30%. Finished goods inventory:

1, 2012???????????......????....$160,000

December 31, 2012???????????...140,000

Required:

On Logan?s multiple-step income statement for 2012, determine Logan Corp.?s income (loss) before extraordinary item. (Show complete computations)

b) Presented below is information related to Farr Company.

Retained earnings, December 31, 2012?????????????..$ 650,000

Sales revenue???????..??????????..........??????1,400,000

Selling and administrative expenses???????????????..240,00Hurricane loss (pre-tax) on plant (extraordinary item)???????????????????????????? 270,000

Cash dividends declared on common stock?????????????..33,600

Cost of goods sold??????????????????????...830,000

Gain resulting from computation error on dep charge in 2010?????...520,000

Other revenue????????????????????????..120,000

Other expenses????????????????????????100,000

Instructions

Prepare in good form a multiple-step income statement for the year 2012. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.

Transcribed Image Text:

Sales revenue Cost of goods sold Administrative expenses Loss on disposal of equipment Sales commission expense Interest revenue Freight-out Loss due to earthquake damage Bad debt expense Totals Debit $100,000 50,000 18,000 16,000 Credit $280,000 10,000 6,000 24,000 6,000 $220.000 $290.000 Sales revenue Cost of goods sold Administrative expenses Loss on disposal of equipment Sales commission expense Interest revenue Freight-out Loss due to earthquake damage Bad debt expense Totals Debit $100,000 50,000 18,000 16,000 Credit $280,000 10,000 6,000 24,000 6,000 $220.000 $290.000

Answer rating: 100% (QA)

a Logan Corp Income statement for the year ended December 31 2012 Amount in Particulars Sales 280000 ... View the full answer