Ronney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 700 shares ($ 0.10 par value share) issued at the end of the year for $ 3,000 are included below:

Prepare a multi-step income statement in good form for the current year. Include earnings per share. (Round your earnings per share to 2 decimal places)

Explain how to calculate earnings per share

Transcribed Image Text:

Cash Accounts receivable Interest receivable Prepaid insurance Notes receivable (long-term) Equipment Accumulated depreciation Accounts payable Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (820 shares) Additional paid-in capital Retained earnings Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Income tax expense Total Debit $ 1,630 2,320 160 1,630 3,000 15,300 18,400 1,770 410 700 $ Credit 2,900 2,360 3,860 2,540 420 82 3,438 4,010 37,350 140 660 9,700 2,740 $ 57,760 $ 57,760 ROMNEY'S MARKETING COMPANY Operating revenues: Sales revenue Income Statement For the current year Total operating revenues Operating expenses: Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Total operating expenses Operating income Other items: Interest revenue Rent revenue Pretax income Income taxes expense Net income Earnings per share $ $ 37,350 37,350 18,400 1,770 410 700 9,700 30,980 6,370 140 660 7,170 2,740 4,430 Cash Accounts receivable Interest receivable Prepaid insurance Notes receivable (long-term) Equipment Accumulated depreciation Accounts payable Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (820 shares) Additional paid-in capital Retained earnings Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Income tax expense Total Debit $ 1,630 2,320 160 1,630 3,000 15,300 18,400 1,770 410 700 $ Credit 2,900 2,360 3,860 2,540 420 82 3,438 4,010 37,350 140 660 9,700 2,740 $ 57,760 $ 57,760 ROMNEY'S MARKETING COMPANY Operating revenues: Sales revenue Income Statement For the current year Total operating revenues Operating expenses: Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Total operating expenses Operating income Other items: Interest revenue Rent revenue Pretax income Income taxes expense Net income Earnings per share $ $ 37,350 37,350 18,400 1,770 410 700 9,700 30,980 6,370 140 660 7,170 2,740 4,430

Answer rating: 100% (QA)

Earning Per Share Net Profit Preference Dividend Aver... View the full answer