Question Three: The following income statement was prepared for RAT Co. for the year ended 31/12/2015....

 

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Question Three: The following income statement was prepared for RAT Co. for the year ended 31/12/2015. Sales (640,000) Cost of goods old 500,000 Selling expenses 36000 Administrative expenses 30000 Other expenses 35000 Other income (18000) Income before tax 57000 Tax 19400 Net income 37600 Beginning retained earning 134000 Dividend 12200 Ending retained earning 159400 Outstanding ordinary shares 200,000shares The following information is available for you: a) Beginning inventory 100, 000, purchases 600,000, fright 30000, discount on purchases 42000 and ending inventory 188,000 b) Selling expenses include sales discount 20000 and freight on sales 20009. 3) Administrative expenses include 5000 correction of errors for depreciation expense resulted from change in useful life for 2014. 4) Other expenses include 15000 from looses of discontinuing operation. 5) the company changed its inventory method during 2015 and reflected the change in income statement for the year, but didn't take in consideration the effect of change in principle for the year 2014 which understate the income for 2014 (4000$) Required: Prepare multiple step income statement and retained earnings 31/12/2015 for the company? Question Three: The following income statement was prepared for RAT Co. for the year ended 31/12/2015. Sales (640,000) Cost of goods old 500,000 Selling expenses 36000 Administrative expenses 30000 Other expenses 35000 Other income (18000) Income before tax 57000 Tax 19400 Net income 37600 Beginning retained earning 134000 Dividend 12200 Ending retained earning 159400 Outstanding ordinary shares 200,000shares The following information is available for you: a) Beginning inventory 100, 000, purchases 600,000, fright 30000, discount on purchases 42000 and ending inventory 188,000 b) Selling expenses include sales discount 20000 and freight on sales 20009. 3) Administrative expenses include 5000 correction of errors for depreciation expense resulted from change in useful life for 2014. 4) Other expenses include 15000 from looses of discontinuing operation. 5) the company changed its inventory method during 2015 and reflected the change in income statement for the year, but didn't take in consideration the effect of change in principle for the year 2014 which understate the income for 2014 (4000$) Required: Prepare multiple step income statement and retained earnings 31/12/2015 for the company?

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Multistep Income statement For the year ending 31122015 100000 6... View the full answer