ENG SL     login   register  
 All content arrowdown greybar search
 Tutorial  

The following information was taken from the records of Gibson Inc. for the year 2010

E4-16 (Various Reporting Formats) The following information was taken from the records of Gibson Inc. for the year 2010. Income tax applicable to income from continuing operations $119,000; income tax applicable to loss on discontinued operations $25,500; income tax applicable to extraordinary gain $32,300; income tax applicable to extraordinary loss $20,400; and unrealized holding gain on available-for-sale securities $15,000.
Extraordinary gain $ 95,000 Cash dividends declared $ 150,000
Loss on discontinued operations 75,000 Retained earnings January 1, 2010 600,000
Administrative expenses 240,000 Cost of goods sold 850,000
Rent revenue 40,000 Selling expenses 300,000
Extraordinary loss 60,000 Sales 1,700,000
Shares outstanding during 2010 were 100,000.

Instructions
(a) Prepare a single-step income statement for 2010.
(b) Prepare a retained earnings statement for 2010.
(c) Show how comprehensive income is reported using the second income statement format.


 ashhadiqbal
quote
ence REGARDST...(11 more words & 1 attachments).
attachments
 gibson_inc.xlsx (10KB)  
 ~0 comment(s).




 related tutorials
ashhadiqbal E4-16 The following information was taken from the records of Roland Carlson Inc. for the year 2004...view 
ashhadiqbal E4-16 The following information was taken from the records of Roland Carlson Inc. for the year 2004...view 
MuhammadYousaf Make all necessary entries on the Final Exam Answer sheet in the Partial Income Statement provided for Problem 3 using the following information: The following information was taken from the account...view 
MuhammadYousaf ***Please show all work. Thanks! Income Statement Preparation The following selected information is taken from the records of Pickard and Associates. Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $ 143,000 Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 95,000 Advertising expense . . . . . . . . . . . . . . . . . . . . . . 14,500 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,000 Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . 31,500 Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 Income taxes (30% of income before taxes) . . . . ? Miscellaneous expense . . . . . . . . . . . . . . . . . . . . 5,100 Owners’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . 215,000 Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . 78,000 Fees (revenues) . . . . . . . . . . . . . . . . . . . . . . . . . 476,000 1. Prepare an income statement for the year ended December 31, 2009. (Assume that 11,000 shares of stock are outstanding.) 2. Explain what the EPS ratio tells the reader about Pickard and Associates. Preparation of Income Statement and Retained Earnings Statement Prepare an income statement and a statement of retained earnings for Big Sky Corporation for the year ended June 30, 2009, based on the following information: Capital stock (1,500 shares @ $100) . . . . . . . . . . . . . . . . . . $150,000 Retained earnings, July 1, 2008 . . . . . . . . . . . . . . . . . . . . . . . 76,800 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,500 Ski rental revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,900 Expenses: Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,000 Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,600 Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,700 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100 64,300...view 
MuhammadYousaf Income Statement Preparation The following selected information is taken from the records of Pickard and Associates. Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $ 143,000 A...view 
MuhammadYousaf The following information was summarized from the records of the Muentes Company for the first quarter of the year:...view 
MuhammadYousaf The following information was summarized from the records of the Muentes Company for the first quarter of the year: The company's contribution margin for the quarter was:...view 
MuhammadYousaf The following information about the payroll for the week ended December 30 was obtained from the records of Arnsparger Equipment Co.: Salaries: Deductions: Sales salaries $251,000 ...view 
MuhammadYousaf The following information was obtained from the records of Refo, Inc. Merchandise inventory $ 38,000 Notes payable (long-term) 50,000 Sales 150,000 Buildings and equipment 84,000 Selling, general, and administrative expenses 12,000 Accounts receivable 20,000 Common stock (7,000 shares) 35,000 Income tax expense 14,000 Cash 31,100 Retained earnings, 1/1/10 21,500 Accrued liabilities 3,000 Cost of goods sold 96,000 Accumulated depreciation 36,000 Interest expense 8,900 Accounts payable 15,900 Dividends declared and paid during 2010 7,400 ________________________________________ Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2010, and that all income statement items reflect activities that occurred during the year ended December 31, 2010. There were no changes in paid-in capital during the year. Required: (a) Prepare an income statement and statement of changes in owners' equity for the year ended December 31, 2010, and a balance sheet at December 31, 2010, for Refo, Inc. Based on the financial statements that you have prepared for part a, answer the questions in parts b–e. (Amounts to be deducted should be indicated with minus sign. For balance sheet - Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) Refo, INC. Income Statement For the Year Ended December 31, 2010 Selling, general, and administrative expenses $n/r Earnings before taxes n/r ________________________________________ Gross profit $n/r Income tax expense n/r ________________________________________ Operating income $n/r Selling, general, and administrative expenses n/r ________________________________________ n/r $n/r n/r n/r ________________________________________ n/r $n/r ________________________________________________________________________________ ________________________________________ Refo, INC. Statement of Changes in Owners' Equity For the Year Ended December 31, 2010 Paid-in capital : n/r $n/r Retained earnings: n/r $n/r n/r n/r n/r n/r ________________________________________ n/r n/r ________________________________________ Total owners' equity $n/r ________________________________________________________________________________ ________________________________________ Refo, INC. Balance Sheet December 31, 2010 Assets: n/r $n/r n/r n/r n/r n/r ________________________________________ Total current assets $n/r n/r n/r n/r n/r n/r ________________________________________ ________________________________________ Total Assets $n/r ________________________________________________________________________________ Liabilities: n/r $n/r n/r n/r n/r n/r ________________________________________ Total liabilities $n/r Owners' Equity: n/r $n/r n/r n/r ________________________________________ Total owners' equity $n/r ________________________________________ Total liabilities and owners' equity $n/r ________________________________________________________________________________ ________________________________________ (b) What is the company's average income tax rate? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) Average income tax rate n/r % (c) What interest rate is charged on long-term debt? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) Interest rate n/r % (d) What is the par value per share of common stock? (Omit the "$" sign in your response.) Par value per share $n/r (e) What is the company's dividend policy (i.e., what proportion of the company's earnings are used for dividends)? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) Dividend n/r %...view 
MuhammadYousaf Make all necessary entries on the Final Exam Answer sheet in the Partial Income Statement provided for Problem 3 using the following information: The following information was taken from the account...view 
ask an expert