Chapter 4 HW - E4-8a)Brokaw Corp Income StatementFor the...

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Unformatted text preview: E4-8a)Brokaw Corp. Income StatementFor the year ended December 31, 2010Sales RevenueNet Sales Revenue$1,200,000 Cost of Goods Sold$780,000 Gross Profit$420,000 Operating ExpensesSelling Expenses$65,000 Adminstrative Expenses$48,000 $113,000 Income from Operations$307,000 Other Revenue and GainsDividend Revenue$20,000 Rental Revenue$7,000 $27,000 Other Expenses and lossesWrite-off of inventory due to obsolescence$80,000 Income from continuing operations before income tax$254,000 Income tax$86,360 Income before extraordinary items$167,640 Extraordinary item - loss from casualty$50,000 Less: Applicable income tax reduction$17,000 $67,000 Net Income$100,640 Per share of common stockIncome before extraordinary items$2.79 Extraordinary loss, net of tax($1.12)Net income$1.68 ------------------------------------------------------------------------------------------------------b)Brokaw Corp. Statement of Retained EarningsFor the year ended December 31, 2010Retained Earnings at December 31, 2009$980,000 Depreciation expense omitted by accident in 2009$40,000 Adjusted Retained Earnings at January 1, 2010$940,000 Add: Net Income$100,640 $1,040,640 Less: Cash Dividends declared$45,000 Retained Earnings at December 31, 2010$995,640 -------------------------------------------------------------------------------------------------------P4-4a)Twain CorporationIncome Statement - Multi-StepFor Year Ended June 30, 2010Sales RevenueSales$1,578,500 Less: Sales discounts$31,150 Sales returens $62,300 $93,450 Net sales revenue$1,485,050 Cost of goods sold$896,770 Gross profit on sales$588,280 Operating ExpensesSelling expensesSales commission$97,600 Sales salaries$56,260 Travel expenses - salespersons$28,930 Freight-out$21,400 Entertainment expense$14,820 Telephone and Internet expense-sales$9,030 Building expense - prorated to sales$6,200 Depreciation of sales equipment$4,980 Bad debt expense-selling$4,850 Miscellaneous selling expense$4,715 Total selling expenses$248,785 Administrative expensesBuilding expense - proprated to adminitration$9,130 Real estate amd other local taxes$7,320 Depreciation of office equipment$7,250 Office supplies used$3,450 Telephone and internet expense - administration$2,820 Miscellaneous office expense$6,000 Total administrative expenses...
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Chapter 4 HW - E4-8a)Brokaw Corp Income StatementFor the...

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