Quiz-Chapter4

Quiz-Chapter4 - 53 For Garret Wolfe Company the following...

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Unformatted text preview: 53. For Garret Wolfe Company, the following information is available:Cost of goods sold $ 60,000Dividend revenue 2,500Income tax expense 6,000Operating expenses 23,000Sales 100,000In Garret Wolfe’s single-step income statement, gross profit |,|a. should not be reported. |,|0|<<|54. For Garret Wolfe Company, the following information is available:Cost of goods sold $ 60,000Dividend revenue 2,500Income tax expense 6,000Operating expenses 23,000Sales 100,000In Garret Wolfe’s multiple-step income statement, gross profit |,|c. should be reported at $40,000. |,|0|<<|55. For Merando Company, the following information is available:Cost of goods sold $ 90,000Dividend revenue 4,000Income tax expense 9,000Operating expenses 35,000Sales 150,000In Merando’s multiple-step income statement, gross profit |,| c. should be reported at $60,000. |,|0|<<|56. Gross billings for merchandise sold by Otto Company to its customers last year amounted to $15,720,000; sales returns and allowances were $370,000, sales discounts were |,|$175,000, and freight-out was $140,000. Net sales last year for Otto Company werec. $15,175,000. |,|0|<<|57. If plant assets of a manufacturing company are sold at a gain of $820,000 less related taxes of $250,000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects as |,|a. a gain of $820,000 and an increase in income tax expense of $250,000. |,|0|<<|58. Sam Hurd Company has the following items: write-down of inventories, $120,000; loss on disposal of Sports Division, $185,000; and loss due to strike, $113,000. Ignoring income taxes, what total amount should Sam Hurd Company report as extraordinary losses? |,|a. $ -0-. |,|0|<<|59. Fleming Company has the following items: write-down of inventories, $240,000; loss on disposal of Sports Division, $370,000; and loss due to an expropriation, $226,000.Ignoring income taxes, what total amount should Fleming Company report asextraordinary losses? |,|a. $226,000 |,|0|<<|60. An income statement shows “income before income taxes and extraordinary...
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Quiz-Chapter4 - 53 For Garret Wolfe Company the following...

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