The following represents operating data for both the West and East divisions prior to the sale of
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The following represents operating data for both the West and East divisions prior to the sale of the East Division's assets on 8/31/2020 | ||||||||||
West | East | |||||||||
Sales revenue | 6,800,000 | 4,300,000 | ||||||||
Cost of goods sold | 4,000,000 | 3,000,000 | ||||||||
Other operating expenses | 2,200,000 | 1,160,000 | ||||||||
Interest expense on equipment loans for that division | 120,000 | 60,000 | ||||||||
The following data represent FBND's investment, book values, and sales prices for the East Division's assets sold on 8/31/2020 | ||||||||||
Assets at cost | 6,000,000 | |||||||||
Accumulated depreciation | 5,300,000 | |||||||||
Sales price | 600,000 | |||||||||
On January 30, 2021 it was found that $300,000 in West Division other operating expenses had not been included in the 2019 income statement. | ||||||||||
FBND started 2020 with a reported retained earnings balance of $480,000. | ||||||||||
The tax rate for 2019 & 2020 was 21% | ||||||||||
FBND had 20,000 shares of preferred stock outstanding and paid a $1.25 per share dividend. | ||||||||||
FBND had 100,000 shares of common stock outstanding and paid a $0.80 per share dividend. | ||||||||||
Your task is to: complete FBND's 2020's income statement with earnings per share and statement of retained earning in the IS & RE worksheet in good form. FBND is 12/31 year end company. |
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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