SOLUTIONS TO BRIEF EXERCISES-4-1

SOLUTIONS TO BRIEF EXERCISES-4-1 - SOLUTIONS TO BRIEF...

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SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 4-1 STARR CO. Income Statement For the Year 2010 Revenues Sales. ...................................................................... $540,000 Expenses Cost of goods sold. ............................................... $330,000 Wage expense. ....................................................... 120,000 Other operating expenses. ................................... 10,000 Income tax expense. ............................................. 25,000 Total expenses. ............................................ 485,000 Net income. ....................................................................... $55,000 Earnings per share. .......................................................... $0.55 * *$55,000 ÷ 100,000 shares. Note : The increase in value of the company reputation and the unrealized gain on the value of patents are not reported.
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BRIEF EXERCISE 4-2 BRISKY CORPORATION Income Statement For the Year Ended December 31, 2010 Revenues Net sales. .............................................................. $2,400,000 Interest revenue. ................................................. 31,000 Total revenues. ............................................ 2,431,000 Expenses Cost of goods sold. ............................................. $1,450,000 Selling expenses. ................................................ 280,000 Administrative expenses. ................................... 212,000 Interest expense. ................................................. 45,000 Income tax expense*. .......................................... 133,200 Total expenses. .......................................... 2,120,200
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This note was uploaded on 04/15/2011 for the course ACCT 305 taught by Professor Allen during the Spring '11 term at Wilmington DE.

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SOLUTIONS TO BRIEF EXERCISES-4-1 - SOLUTIONS TO BRIEF...

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