intermediate accounting week 6 project

intermediate accounting week 6 project - P5-9 Name:...

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Unformatted text preview: P5-9 Name: martinia akers 1. Prepare a multiple-step format income statement by filling in the line items and amounts in the shaded cells. An asterisk (*) will appear next to an incorrect amount in specific cells. OLSEN COMPANY Income Statement For Year Ended December 31, 2010 Net Sales $196,000 Cost Of Goods (120,100) Gross Profit $75,900 Operating expenses selling expenses $19,600 General and administrative Expense 16,800 Total operating expenses (36,400) Operating Income $39,500 Other items Interest Revenue $2,300 Interest Expense (3,400) Gain on Sale of Equiptment 3,200 2,100 Pretax income from continuing operations 41,600 Income Tax Expense (12,480) Income from continuing operations $29,120 Results from discontinued operations Loss from operations of discontinued Division L (Net of $900) Income tax credit) ($2,100) Gain on sale of Division L ( net of $1,800 income tax credit) 3,150 1,050 Income before extraordinary items $30,170 Extrardinary loss because of earthquake ( Net of $1,800 income tax credit) (4,200) Net Income $25,970 Components of Income Income from continuing operations Results from discontinued operations Extraordinary loss due to earthquake Net Income Earnings per common share (8,000 shares) $3.64 0.13 (0.52) $3.25 2. Prepare a retained earnings statement by filling in the line items and amounts in the shaded cells. An asterisk (*) will appear next to an incorrect amount in the specific cells. OLSEN COMPANY Statement of Retained Earnings For Year Ended December 31, 2010 Retained Earnings, January 1, 2010 Prior period adjustment correction of understatement of 2009 income (net of $1,650 income tax credit) Adjusted retained earnings January, 1, 2010 Net Income Cash dividends $0.50 per share Retained earnings, December 31, 2010 $59,300 -$3,850 55,450 25,970 $81,420 (4,000) $77,420 ...
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This note was uploaded on 11/30/2010 for the course ACCOUNTING acc 301 taught by Professor Jaquiline during the Spring '10 term at Kaplan University.

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