srping2012401ch4solutions(1)

srping2012401ch4solutions(1) - ACCT401 Chapter 4 Homework...

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ACCT401 Chapter 4 Homework Solutions E4-5, 4-8, 4-11(a), 4-13, 4-14 P4-4(a), 4-7 EXERCISE 4-5 PARNEVIK CORP. Income Statement For the Year Ended December 31, 2012 Sales Revenue Sales revenue. ......................................................................... $1,280,000 Less: Sales returns and allowances. ...................................... $150,000 Sales discounts. ........................................................ 45,000 195,000 Net sales. ................................................................................. 1,085,000 Cost of goods sold. .................................................................. 621,000 Gross profit. ................................................................................... 464,000 Operating Expenses Selling expenses. ............................................................... 194,000 Office expenses. ................................................................. 97,000 291,000 Income from operations. ................................................................ 173,000 Other Revenues and Gains Interest revenue. ........................................................................ 86,000 Other Expenses and Losses Interest expense. ....................................................................... 60,000 Income before tax and extraordinary item. ......................................... 199,000 Income tax ($199,000 X .34). .................................................... 67,660 Income before extraordinary item. ...................................................... 131,340 Extraordinary item—loss from earthquake damage. ............................ 120,000 Less: Applicable tax reduction ($120,000 X .34). ...................... 40,800 79,200 Net income. ......................................................................................... $ 52,140 Per share of common stock: Income before extraordinary item ($131,340 ÷ 100,000). ............................................................ $1.31* Extraordinary item (net of tax). .................................................. (0.79 ) Net income ($52,140 ÷ 100,000). .............................................. $0.52 *Rounded 1
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ACCT401 EXERCISE 4-8 (a) BROKAW CORP. Income Statement For the Year Ended December 31, 2012 Sales Revenue Net sales. ................................................................. $1,200,000 Cost of goods sold. .................................................. 780,000 Gross profit. ........................................................ 420,000 Operating Expenses Selling expenses. .................................................... $65,000 Administrative expenses. ........................................ 48,000 113,000 Income from operations. ...................................................... 307,000
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This note was uploaded on 03/20/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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srping2012401ch4solutions(1) - ACCT401 Chapter 4 Homework...

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