Intermediate Accounting I Fall 2021 Handout Problem #4 for Chapter 4 Huntley Corporation reported the following all items for the year ended December 31. 2020 (some of Harrison's balance sheet accounts have been omitted) Huntley's Sales Paid in Capital in Excess of Par Purchases Retained Earnings on January 1, 2020 Common Stock, S10 par, 24,000 shares Accumulated Depreciation Wages Expense Utilities Expense Merchandise Inventory, Ending Merchandise Inventory, Beginning Advertising Expense Depreciation Expense Interest Expense Insurance Expense Accounts Receivable Prior Period Adjustment (debit balance) Gain from Discontinued Operations Rent Expense Dividends Declared ($6,000 for preferred and $18,000 for common) Sales Returns Loss on Sale of Equipment Interest Revenue Supplies Expense Unrealized Gain on Available for Sale Securities which are Bonds Rent Revenue Dividend Revenue $1,300,000 770,000 600,000 387.000 240,000 190.000 100.000 80.000 72,000 60,000 62,000 79,000 50.000 46,000 45.000 40.000 30,000 26.000 24,000 20,000 12,000 11,000 10,000 9,000 7,000 6,000 Assume that Huntley was in a 21% tax rate this year and a 25% tax rate in all previous years. Assume also that Huntley sold 4,000 shares of common stock on October 1 of this year (which is already included in the 24,000 shares above). INSTRUCTIONS: 1. Prepare a multiple step income statement for the year ended December 31, 2020, from the accounts and amounts listed above. Not all accounts will be used. 2. Prepare a retained earnings statement for the year ended December 31, 2020, from the accounts and amounts listed above. Not all accounts will be used. Intermediate Accounting I Fall 2021 Handout Problem #4 for Chapter 4 Huntley Corporation reported the following all items for the year ended December 31. 2020 (some of Harrison's balance sheet accounts have been omitted) Huntley's Sales Paid in Capital in Excess of Par Purchases Retained Earnings on January 1, 2020 Common Stock, S10 par, 24,000 shares Accumulated Depreciation Wages Expense Utilities Expense Merchandise Inventory, Ending Merchandise Inventory, Beginning Advertising Expense Depreciation Expense Interest Expense Insurance Expense Accounts Receivable Prior Period Adjustment (debit balance) Gain from Discontinued Operations Rent Expense Dividends Declared ($6,000 for preferred and $18,000 for common) Sales Returns Loss on Sale of Equipment Interest Revenue Supplies Expense Unrealized Gain on Available for Sale Securities which are Bonds Rent Revenue Dividend Revenue $1,300,000 770,000 600,000 387.000 240,000 190.000 100.000 80.000 72,000 60,000 62,000 79,000 50.000 46,000 45.000 40.000 30,000 26.000 24,000 20,000 12,000 11,000 10,000 9,000 7,000 6,000 Assume that Huntley was in a 21% tax rate this year and a 25% tax rate in all previous years. Assume also that Huntley sold 4,000 shares of common stock on October 1 of this year (which is already included in the 24,000 shares above). INSTRUCTIONS: 1. Prepare a multiple step income statement for the year ended December 31, 2020, from the accounts and amounts listed above. Not all accounts will be used. 2. Prepare a retained earnings statement for the year ended December 31, 2020, from the accounts and amounts listed above. Not all accounts will be used