Chapter 2 Additional Problem: The following information is from the books of Try

Question

Chapter 2 Additional Problem: The following information is from the books of Trying to Get This Corp. All balances are as of December 31, 2017 unless otherwise indicated. Prepare an Income Statement Statement of Owners Equity and a Balance Sheet for the Year Ended December 31, 2017 Be sure and calculate earnings per share on the Income Statement. $ 42,000 58,000 158,000 Merchandise inventory Mortgage note payable Sales 84,000 12,000 22,000 Building and equipment Rent expense Cash Depreciation expense Accounts payable Salaries expense Retained earnings, 01/01/17 Accumulated depreciation Utilities expense nterest expense ncome taxes payable ost of goods sold come tax expense dvertising expense ccounts receivable vidends declared and paid mmon stock (7,000 shares issued) 7,000 15,000 28,000 21,500 26,000 8,000 5,000 3,000 58,000 14,000 10,000 20,000 6,500 35,000

Explanation / Answer

1,42,000

Earnings per Share = Earnings avaiable for equity shareholders / No. Of shares outstanding

= $16,000/ 7000 Shares

= $2.29 per Share

Trying to Get This Corp Income Statement for Month Ended December 31 2017 Revenues Sales 1,58,000 1,58,000 Expenses Cost of Good Sold      58,000 Depreciation         7,000 Utilies Expense         8,000 Salary Expense      28,000 Rent Expense      12,000 Advertising expense      10,000 Interest Expense         5,000 Income tax Expense      14,000 Total Expenses 1,42,000 Net income      16,000 Trying to Get This Corp Statement of Retained Earnings for Month Ended December 31 2017 Retained earnings, 01/01/17 21,500 Net income      16,000 Total Retained earnings      37,500 Less: Dividend paid         6,500 Retained Earnings, 31/12/2017      31,000

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