Case Number 01 (Multi-step Income Statement & Statement of Retained Earnings) Presented below is information related...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Case Number 01 (Multi-step Income Statement & Statement of Retained Earnings) Presented below is information related to American Horse Company for 2004. b. Retained earnings balance, January 1, 2004 Sales for the year Cost of goods sold Depreciation Expense mistakenly not reported, 2002 C Telephone Sales Advances from customers Interest revenue Rental revenue Write-off of inventory due to obsolescence Accumulated depreciation Equipment Accumulated depreciation Building Write-off of goodwill (Infrequent or Unusual Item) Sales Discounts Prepaid Rent Sales Return Overstatement of income due change in inventory costing method Prepaid insurance Inventory (based on LCM) Income taxes for 2004 Travel and entertainment Advertising Transportation-out Sales commissions Unrealized gain on investment Gain on the sale of investments (normal recurring) Loss due to flood damage-extraordinary item Loss on the disposition of the wholesale division Loss on operations of the wholesale division $ 850,000 39,000,000 19,000,000 32,000 27,000 117,000 70,000 50,000 80,000 40,000 28,000 820,000 15,000 45,000 25,000 88,000 20,000 48,000 905,000 69,000 54,000 93,000 83,000 40,000 110,000 390,000 Requirement Prepare a multi-step income statement and a retained earnings statement. American Horse Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, American Horse sold the wholesale operations to Rogers Company. During 2004, there were 300,000 shares of common stock outstanding all year. 440,000 90,000 Overstated allowance for doubtful account in prior year 12,000 Dividends declared on common stock 250,000 Dividends declared on preferred stock 70,000 (05) Calculate Earnings per share before discontinued operation and after discontinued operation for the common shareholders. (01) Discuss how the extraordinary gain and losses are treated differently under GAAP and IFRS standards and how they are adjusted for taxes? (02) Case Number 01 (Multi-step Income Statement & Statement of Retained Earnings) Presented below is information related to American Horse Company for 2004. b. Retained earnings balance, January 1, 2004 Sales for the year Cost of goods sold Depreciation Expense mistakenly not reported, 2002 C Telephone Sales Advances from customers Interest revenue Rental revenue Write-off of inventory due to obsolescence Accumulated depreciation Equipment Accumulated depreciation Building Write-off of goodwill (Infrequent or Unusual Item) Sales Discounts Prepaid Rent Sales Return Overstatement of income due change in inventory costing method Prepaid insurance Inventory (based on LCM) Income taxes for 2004 Travel and entertainment Advertising Transportation-out Sales commissions Unrealized gain on investment Gain on the sale of investments (normal recurring) Loss due to flood damage-extraordinary item Loss on the disposition of the wholesale division Loss on operations of the wholesale division $ 850,000 39,000,000 19,000,000 32,000 27,000 117,000 70,000 50,000 80,000 40,000 28,000 820,000 15,000 45,000 25,000 88,000 20,000 48,000 905,000 69,000 54,000 93,000 83,000 40,000 110,000 390,000 Requirement Prepare a multi-step income statement and a retained earnings statement. American Horse Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, American Horse sold the wholesale operations to Rogers Company. During 2004, there were 300,000 shares of common stock outstanding all year. 440,000 90,000 Overstated allowance for doubtful account in prior year 12,000 Dividends declared on common stock 250,000 Dividends declared on preferred stock 70,000 (05) Calculate Earnings per share before discontinued operation and after discontinued operation for the common shareholders. (01) Discuss how the extraordinary gain and losses are treated differently under GAAP and IFRS standards and how they are adjusted for taxes? (02)
Expert Answer:
Answer rating: 100% (QA)
Solution For A Sales TelephoneSales Rental Revenue Total Reve... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Presented below is information related to American Horse Company for 2004. Retained earnings balance, January 1, 2004 $ 850,000 Sales for the year 39,000,000 Cost of goods sold 19,000,000...
-
Presented below is information related to Russell Corporation for the month of January 2012. InstructionsPrepare the necessary closingentries. Cost of goods sold Freight-out Salaries and wages...
-
Presented below is information related to Gonzales Corporation for the month of January 2008. Instructions Prepare the necessary closingentries. Cost of goods sold $208,000 alary expense Freight-out...
-
The stockholders' equity accounts of Marya Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $100 par, cumulative, 5,000 shares authorized) ...$300,000 Common Stock ($3 stated...
-
On June 1 of Year 1, Water Corporation places into service a machine costing $10,000. The machine is seven-year property under the MACRS rules and has a 12-year class life. Water does not elect Sec....
-
Osborne Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Osborne Manufacturings operations: Current assets as of December 31...
-
Use the financial data for Randa Merchandising, Inc., in Exercise 13-13 to prepare its income statement for calendar-year 2017. (Ignore the earnings per share section.) Data From Exercise 13.13 In...
-
Previn Brothers Inc. purchased land at a price of $27,000. Closing costs were $1,400. An old building was removed at a cost of $10,200. What amount should be recorded as the cost of the land?
-
a. Draw a graph of the household production model, for a household shared by a man (m) and a woman (f). Assume that the man's wages are higher (wm > w f) and that the woman is more productive in the...
-
Coffee Blending and Sales Hill-O-Beans Coffee Company blends four component beans into three final blends of coffee: one is sold to luxury hotels, another to restaurants, and the third to...
-
Mr. Grow and Mr. Green had the following mutual dealings. They desired to settle their account on the average due date: Purchases by Grow from Green: 6th January, 2021 2nd February, 2021 31st March,...
-
If Bryan held the bonds until 21st November 2024, what was her holding period yield if the yield was 6.75%p.a.? on the day he sold the bond.
-
Widget Inc made an adjustment to one of their machines to ensure that the machine doesn t start if the material length is not to specs. This is an example of what?
-
= A car (mass 1150 kg) is traveling at 28.9 m/s when it collides head-on with a sport utility vehicle (mass = 2270 kg) traveling in the opposite direction. In the collision, the two vehicles come to...
-
What molecular and cellular mechanisms underlie the intricate process of embryonic patterning, including axis specification, morphogen gradients, and transcriptional regulation, during early...
-
Protecting New York City for the expected increased rates in sea level rise will require ?Explain.
-
Discuss how global supply chain disruptions have affected the global economy, with a particular emphasis on the US economy. Focus on how these broken supply chains have affected large corporations...
-
A bar of length = 1 has one fixed and one free end and stiffness function c(x) = 1 - x. Find the displacement when subjected to a unit force. Pay careful attention to the boundary condition at the...
-
The Colson Company issued $300,000 of 10% bonds on January 1, 2013. The bonds are due January 1, 2018, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare...
-
The following article appeared in the Wall Street Journal. Bond Markets Giant Commonwealth Edison Issue Hits Resale Market With $70 Million Left Over New YorkCommonwealth Edison Co.s slow-selling new...
-
For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Coyle Corp. issued $10,000,000 par value 10% convertible bonds at 99. If the...
-
Example In January 2004, a Mars Exploration Rover touched down on the surface of Mars and rolled out for exploration ( Figure
-
A battery-operated wall clock no longer keeps timeneither hand moves. Develop a hypothesis explaining why it fails to work, and then make a prediction that permits you to test your hypothesis....
-
Does the snowflake have rotational symmetry in Figure 1.6? If yes, describe the ways in which the flake can be rotated without changing its appearance. Does it have reflection symmetry? If yes,...
Study smarter with the SolutionInn App