Intermediate Accounting Test 2
Intermediate Accounting Test 2
The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2012. | Rental revenue | $29,000 | | Interest expense | 18,000 | | Market appreciation on land above cost | 31,000 | | Wages and salaries-sales | 114,800 | | Materials and supplies-sales | 17,600 | | Income tax | 30,600 | | Wages and salaries-administrative | 135,900 | | Other administrative expenses | 51,700 | | Cost of goods sold | 516,000 | | Net sales | 980,000 | | Depreciation on plant assets (70% selling, 30% administrative) | 65,000 | | Dividends declared | 16,000 |
There were 20,000 shares of common stock outstanding during the year. (a) | Prepare a multiple-step income statement. |
(b) | Prepare a single-step income statement. |
Armstrong Corporation reported the following for 2012: net sales $1,200,000; cost of goods sold $720,000; selling and administrative expenses $320,000; and an unrealized holding gain on available-for-sale securities $15,000.
Prepare a statement of comprehensive income, using the two-income statement format. Ignore income taxes and earnings per share.
Presented below is information related to Dickinson Company for 2012. | Retained earnings balance, January 1, 2012 | $980,000 | | Sales for the year | 25,000,000 | | Cost of goods sold | 16,000,000 | | Interest revenue | 70,000 | | Selling and administrative expenses | 4,700,000 | | Write-off of goodwill (not tax deductible) | 820,000 | | Income taxes for 2012 | 1,244,000 | | Gain on the sale of investments (normal recurring) | 110,000 | | Loss due to flood damage–extraordinary item (net of tax) | 390,000 | | Loss on the disposition of the wholesale division (net of tax) | 440,000 | | Loss on operations of the wholesale division (net of tax) | 90,000 | | Dividends declared on
The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2012. | Rental revenue | $29,000 | | Interest expense | 18,000 | | Market appreciation on land above cost | 31,000 | | Wages and salaries-sales | 114,800 | | Materials and supplies-sales | 17,600 | | Income tax | 30,600 | | Wages and salaries-administrative | 135,900 | | Other administrative expenses | 51,700 | | Cost of goods sold | 516,000 | | Net sales | 980,000 | | Depreciation on plant assets (70% selling, 30% administrative) | 65,000 | | Dividends declared | 16,000 |
There were 20,000 shares of common stock outstanding during the year. (a) | Prepare a multiple-step income statement. |
(b) | Prepare a single-step income statement. |
Armstrong Corporation reported the following for 2012: net sales $1,200,000; cost of goods sold $720,000; selling and administrative expenses $320,000; and an unrealized holding gain on available-for-sale securities $15,000.
Prepare a statement of comprehensive income, using the two-income statement format. Ignore income taxes and earnings per share.
Presented below is information related to Dickinson Company for 2012. | Retained earnings balance, January 1, 2012 | $980,000 | | Sales for the year | 25,000,000 | | Cost of goods sold | 16,000,000 | | Interest revenue | 70,000 | | Selling and administrative expenses | 4,700,000 | | Write-off of goodwill (not tax deductible) | 820,000 | | Income taxes for 2012 | 1,244,000 | | Gain on the sale of investments (normal recurring) | 110,000 | | Loss due to flood damage–extraordinary item (net of tax) | 390,000 | | Loss on the disposition of the wholesale division (net of tax) | 440,000 | | Loss on operations of the wholesale division (net of tax) | 90,000 | | Dividends declared on