The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on...

  

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The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on December 31, 2021. During 2021 the Outdoor Corporation sold its river tubing component of the business, the River Rafts Company. The Outdoors Corporation correctly accounted for the sale as a discontinued operation. Account Debit Credit $ 13,700 Accounts payable Accounts receivable $ 43,000 30,500 87,000 Accumulated depreciation - equipment Additional paid-in capital – common stock Advertising expense Allowance for doubtful accounts Bad debt expense Cash Common stock, $5 par Cost of goods sold 13,000 3,000 1,500 24,600 65,000 384,000 14,000 Depreciation expense (60% selling, 40% administrative) Dividends 4,500 1,000 Dividend revenue Equipment Held-to-maturity debt securities, due 5/31/24 143,600 38,000 ?? Income tax expense ?? Income tax payable Interest expense 4,000 2,300 Interest revenue 52,900 135,100 5,800 22,700 29,000 Inventory Land held for future use Loss on sale of equipment Marketable equity securities Miscellaneous expense (70% selling, 30% administrative) Note payable - due May 31, 2027 Prepaid insurance Rent expense (80% selling, 20% administrative) Retained earnings, 1/1/21 Salaries expense (20% selling, 80% administrative) 73,700 1,900 174,000 93,900 205,000 1,127,000 Sales revenue 168,000 32,500 22,000 9,000 Sales commission expense Sales returns and allowances Trading debt securities Treasury stock Uneamed sales revenue 3,000 Additional information for 2021: (1) Management of the Outdoors Corporation does not plan to sell the marketable equity securities in 2022. The Outdoors Corporation has less than a 20% ownership in the equity securities. (2) As previously mentioned, during 2021 the Outdoors Corporation disposed of River Rafts Company, the river tubing component of its business. River Rafts Company had operated at a before-tax loss of $12,000 in 2021. The Outdoors Corporation disposed of the river tubing component at a before-tax gain of $40,000. These amounts were not included in the income statement accounts shown on page 1. (3) The Outdoors Corporation classifies its Bad Debt Expense as Selling Expenses. (4) The Outdoors Corporation did not pay any estimated taxes in 2021. (5) The effective income tax rate for 2021 was 20%. (6) You are not required to calculate earnings per share for the year ended December 31, 2021. REQUIRED: On this page and the following pages prepare in good form the Outdoor Corporation's multiple-step Income Statement for the year ended December 31, 2021, Retained Earnings Statement for the year ended December 31, 2021, and its classified Balance Sheet at December 31, 2021. Remember to include the correct heading for each financial statement. The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted account balances on December 31, 2021. During 2021 the Outdoor Corporation sold its river tubing component of the business, the River Rafts Company. The Outdoors Corporation correctly accounted for the sale as a discontinued operation. Account Debit Credit $ 13,700 Accounts payable Accounts receivable $ 43,000 30,500 87,000 Accumulated depreciation - equipment Additional paid-in capital – common stock Advertising expense Allowance for doubtful accounts Bad debt expense Cash Common stock, $5 par Cost of goods sold 13,000 3,000 1,500 24,600 65,000 384,000 14,000 Depreciation expense (60% selling, 40% administrative) Dividends 4,500 1,000 Dividend revenue Equipment Held-to-maturity debt securities, due 5/31/24 143,600 38,000 ?? Income tax expense ?? Income tax payable Interest expense 4,000 2,300 Interest revenue 52,900 135,100 5,800 22,700 29,000 Inventory Land held for future use Loss on sale of equipment Marketable equity securities Miscellaneous expense (70% selling, 30% administrative) Note payable - due May 31, 2027 Prepaid insurance Rent expense (80% selling, 20% administrative) Retained earnings, 1/1/21 Salaries expense (20% selling, 80% administrative) 73,700 1,900 174,000 93,900 205,000 1,127,000 Sales revenue 168,000 32,500 22,000 9,000 Sales commission expense Sales returns and allowances Trading debt securities Treasury stock Uneamed sales revenue 3,000 Additional information for 2021: (1) Management of the Outdoors Corporation does not plan to sell the marketable equity securities in 2022. The Outdoors Corporation has less than a 20% ownership in the equity securities. (2) As previously mentioned, during 2021 the Outdoors Corporation disposed of River Rafts Company, the river tubing component of its business. River Rafts Company had operated at a before-tax loss of $12,000 in 2021. The Outdoors Corporation disposed of the river tubing component at a before-tax gain of $40,000. These amounts were not included in the income statement accounts shown on page 1. (3) The Outdoors Corporation classifies its Bad Debt Expense as Selling Expenses. (4) The Outdoors Corporation did not pay any estimated taxes in 2021. (5) The effective income tax rate for 2021 was 20%. (6) You are not required to calculate earnings per share for the year ended December 31, 2021. REQUIRED: On this page and the following pages prepare in good form the Outdoor Corporation's multiple-step Income Statement for the year ended December 31, 2021, Retained Earnings Statement for the year ended December 31, 2021, and its classified Balance Sheet at December 31, 2021. Remember to include the correct heading for each financial statement.

Answer rating: 100% (QA)

Income Statement for Ms Outdoors Corporation for year ended December 31 2021 Particulars Details Amount Sales 1127000 Sales Commission Expense 168000 ... View the full answer