acc 3300 hw 4 - Homework 4 Acc 3300 EXERCISE 4-1(1820 minutes Computation of net income Change in assets $204,000 Increase(a Change in liabilities

acc 3300 hw 4 - Homework 4 Acc 3300 EXERCISE 4-1(1820...

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Homework 4 Acc 3300 EXERCISE 4-1 (18–20 minutes) Computation of net income Change in assets ................................................................................ $204,000 Increase (a) Change in liabilities ........................................................................... 31,000 Increase (b) Change in stockholders’ equity ........................................................ $173,000 Increase (a) $79,000 + $45,000 + $127,000 – $47,000 (b) $ 82,000 – $51,000 Change in stockholders’ equity accounted for as follows: Net increase ........................................................................................ $ 173,000 Increase in common stock ............................................................ $125,000 Increase in paid-in capital in excess of par ................................. 13,000 Decrease in retained earnings due to dividend declaration .................................................................. (19,000 ) Net increase accounted for ............................................................... (119,000 ) Increase in retained earnings due to net income ............................ $ 54,000 EXERCISE 4-3 (25–35 minutes) (a) Total net revenue: Sales revenue ............................................................................. $390,000
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Homework 4 Acc 3300 Less: Sales discounts ............................................................... $ 7,800 Sales returns and allowances ....................................... 12,400 20,200 Net sales ..................................................................................... 369,800 Dividend revenue ...................................................................... 71,000 Rent revenue ............................................................................. 6,500 Total net revenue ............................................................ $447,300 (b) Net income: Total net revenue (from a) ....................................................... $447,300 Expenses: Cost of goods sold ............................................................... 184,400 Selling expenses .................................................................. 99,400 Administrative expenses .................................................... 82,500 Interest expense .................................................................. 12,700 Total expenses ............................................................... 379,000 Income before income tax ........................................................ 68,300 Income tax ................................................................................. 31,000 Net income ........................................................................... $ 37,300 (c) Dividends declared: Ending retained earnings ......................................................... $125,000 Beginning retained earnings .................................................... 114,400
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Homework 4 Acc 3300 Net increase ........................................................................................... 10,600 Less: Net income (attributed to controlling shareholders) ............... 20,300* Dividends declared ............................................................................... $ 9,700 * $37,300-$17,000 EXERCISE 4-8 (15–20 minutes) (a) Net sales $ 540,000 Cost of goods sold (210,000) Administrative expenses (100,000) Selling expenses (80,000) Discontinued operations-loss (40,000 Income before income tax 110,000 Income tax ($110,000 X .30) 33,000 Net income $ 77,000 (b) Income from continuing operations before income tax $150,000* Income tax ($150,000 X .30) 45,000
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