ACT_3391_Chp_4_Homework_Solutions

ACT_3391_Chp_4_Homework_Solutions - Intermediate Accounting...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Intermediate Accounting I Amanda N. Paul, CPA, MBA Troy University
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter 4 EXERCISE 4-2 (a) Total net revenue: Sales $390,000 Less: Sales discounts $ 7,800 Sales returns 12,400 20,200 Net sales 369,800 Dividend revenue 71,000 Rental revenue 6,500 Total net revenue $447,300 (a) Net income: Total net revenue (from a) $447,300 Expenses: Cost of goods sold 184,400 Selling expenses 99,400 Administrative expenses 82,500 Interest expense 12,700 Total expenses 379,000 Income before income tax 68,300 Income tax 31,000 Net income $ 37,300
Background image of page 2
EXERCISE 4-2 (Continued) (a) Dividends declared: Ending retained earnings $134,000 Beginning retained earnings 114,400 Net increase 19,600 Less: Net income (37,300 ) Dividends declared $ 17,700 ALTERNATE SOLUTION Beginning retained earnings $114,400 Add: Net income 37,300 151,700 Less: Dividends declared ? Ending retained earnings $134,000 Dividends declared must be $17,700 ($151,700 – $134,000)
Background image of page 3

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

View Full DocumentRight Arrow Icon
EXERCISE 4-5 Maria Conchita Alonzo Corp. Income Statement For the Year Ended December 31, 2007 Sales Revenue Sales $1,380,000 Less: Sales returns and allowances $150,000 Sales discounts 45,000 195,000 Net sales revenue 1,185,000 Cost of goods sold 621,000 Gross profit on sales 564,000 Operating Expenses Selling expenses 194,000 Admin. and general expenses 97,000 291,000 Income from operations 273,000
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2011 for the course ACT 4495 taught by Professor Burks during the Fall '10 term at Troy.

Page1 / 12

ACT_3391_Chp_4_Homework_Solutions - Intermediate Accounting...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online