The following balances were taken from the books of Shamrock Corp. on December 3

Question

The following balances were taken from the books of Shamrock Corp. on December 31, 2017.

Assume the total effective tax rate on all items is 34%.

Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Interest revenue $87,050 Accumulated depreciation—equipment $41,050 Cash 52,050 Accumulated depreciation—buildings 29,050 Sales revenue 1,381,050 Notes receivable 156,050 Accounts receivable 151,050 Selling expenses 195,050 Prepaid insurance 21,050 Accounts payable 171,050 Sales returns and allowances 151,050 Bonds payable 101,050 Allowance for doubtful accounts 8,050 Administrative and general expenses 98,050 Sales discounts 46,050 Accrued liabilities 33,050 Land 101,050 Interest expense 61,050 Equipment 201,050 Notes payable 101,050 Buildings 141,050 Loss from earthquake damage 151,050 Cost of goods sold 622,050 Common stock 501,050 Retained earnings 22,050

Explanation / Answer

You can reach me on comment box if you have any doubts. Please rate this answer

Shamrock Corp. multi Income Statement For the year ended 31 December, 2017 Sales Revenue Sales $ 1,381,050 Less: Sales Return and allowances $ 151,050 Less: Sales Discounts $    46,050 $     197,100 Net Sales Revenue $ 1,183,950 Cost of goods sold $     622,050 Gross Profit $     561,900 Operating Expenses Accumulated depreciation - Equipment $    41,050 Accumulated depreciation - Building $    29,050 Selling expenses $ 195,050 Administrative and general expenses $    98,050 Total Operating expenses $     363,200 Income from operations $     198,700 Non operating income and (expenses) Interest revenue $    87,050 Interest expense $ (61,050) Total Non operating income and (expenses) $        26,000 Income before income taxes $     224,700 Income taxes ($224,700*34%) $        76,398 Income from continuing operations before extra ordinary items $     148,302 Extra ordinary loss because of earthquake (net of $51,357 income tax credit) $     (99,693) Net income $        48,609 Components of income Income from continuing operations ($148,302/100,000) $            1.48 Extra ordinary loss because of earthquake ($99,693/100,000) $          (1.00) Net income ($48,609/100,000) $            0.49

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.