Selected account information is given below.
Any item listed separately, below is NOT
included in any other total.
Accounts Payable, Dec. 31, 2005
Accounts Receivable, Dec. 31, 2005
Allowance for Doubtful Accounts
Change in Accounting Principle from LIFO to
FIFO (cumulative increase in income)
Change in estimate -
decrease in Manufacturing
Correction of Error – failed to record
Depreciation Expense in 2003
Cost of Goods Sold
Depreciation Expense on Office Building
Dividends declared for 2005
Gain from selling Awning Division on Apr. 1, 2005
Loss from Operating Awning Division for 3 months
Obligation under Capital Lease
Retained Earnings, Dec. 31, 2004
Unusual Gain on sale of L.T. Investments
On the following pages, you are to construct, in good form
, a multi-step income statement
and a retained earnings Statement for the year ended December 31, 2005.
All items are
Assume a tax rate of 40% on all items.
BE SURE TO LABEL ALL ITEMS.
RETAINED EARNINGS STATEMENT
Compute the total Income Tax Expense for 2005.
SHOW DETAILS OF YOUR
Explain what is meant by interperiod income tax allocations and why they occur.