AC300-03_Unit 6_Assignment_05-9P_Marjorie Bowden

AC300-03_Unit 6_Assignment_05-9P_Marjorie Bowden - P5-9...

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Unformatted text preview: P5-9 Name: 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 Sales evenue $196,000 Less: Selling Expenses 19,600 Net Sales $176,400 Operating expenses Interest Revenue $2,300 Gain on sale of Equipment 3,200 Total operating expenses (36,400) Income from operations $39,500 Other items Net of$1650 income tax credit $3,850 Dividend costs 4,000 Loss due to eqrthquake 4,200 2,100 Pretax income from continuing operations 41,600 Less: Income tax (12,480) Income from continuing operations $29,120 Results from discontinued operations Miscellaneous Deductions Loss from operations $2,100 Administrative expenses 16,600 1,050 Income before extraordinary items $30,170 Extraordinary item, less income tax of $1800 Net income Components of Income Income from continuing operations Results from discontinued operations Extraordinary loss due to earthquake Net Income (4,200) $25,970 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 Beginning retained earnings $59,300 Gain on sale of Division L (net of $1350 income taxes) Recalculated retained earnings Net revenues $3,150 62,450 18,370 $80,820 3,400 $77,420 Less: Interest expenses Retained earnings, December 31, 2010 Marjorie Bowden ...
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This note was uploaded on 05/30/2011 for the course ACC 300 taught by Professor K.snow during the Spring '09 term at Kaplan University.

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AC300-03_Unit 6_Assignment_05-9P_Marjorie Bowden - P5-9...

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