Accounting 303 chapter 4 homework

# Accounting 303 chapter 4 homework - Accounting 303 CHAPTER...

This preview shows pages 1–3. Sign up to view the full content.

Accounting 303 Janna Lenhart 8/6/2009 Tim Allen Co. had sales revenue of \$540,000 in 2007. Other items recorded during the year were: Cost of goods sold \$320,000 Wage expense 120,000 Income tax expense 25,000 Increase in value of company reputation 15,000 Other operating expenses 10,000 Unrealized gain on value of patents 20,000 Prepare a single-step income statement for Allen for 2007. Allen has 100,000 shares of stock outstanding. TIM ALLEN COMPANY Income Statement For the year ended December 31, 2007 Revenues Net Sales 540,000 Total Revenue 540,000 Expenses Cost of goods sold 320,000 Selling Expense 10,000 Administrative Expenses 120,000 Income Tax Expense 25,000 Total Expenses 475,000 Net Income \$65,000 Earnings per common share (100,000 shares) 0.65 TURNER CORPORATION Income Statement For the year ended December 31, 2007 Revenues Net Sales 2,400,000 Interest Revenue 31,000 Total Revenue 2,431,000 Expenses Cost of goods sold 1,250,000 Selling Expense 280,000 Administrative Expenses 212,000 Interest Expense 45,000 Income Tax Expense 193,200 Total Expenses 1,980,200 Net Income \$450,800 Earnings per common share (70,000 shares issued) 6.44 CHAPTER 4 Brief Exercises BE4-1 BE4-2 Turner Corporation had net sales of \$2,400,000 and interest revenue of \$31,000 during 2007. Expenses for 2007 were: cost of goods sold \$1,250,000; administrative expenses \$212,000; selling expenses \$280,000; interest expense \$45,000. Turner's tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 70,000 shares issued and outstanding during 2007. Prepare a single- step income statement for the year ended December 31, 2007.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Using the information provided in BE4-2, prepare a condensed multiple-step income statement for Turner C TURNER CORPORATION Income Statement For the year ended December 31, 2007 Net Sales \$2,400,000 Cost of goods sold 1,250,000 Gross Profit 1,150,000 Selling Expense 280,000 Administrative Expenses
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 03/20/2010 for the course ACCOUNTING Acc 303 taught by Professor Mr.bartell during the Spring '10 term at Strayer.

### Page1 / 8

Accounting 303 chapter 4 homework - Accounting 303 CHAPTER...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online