Reference no: EM132626359
Questions -
Q1. Presented below is information related to Waterway Corp. for the year 2020.
Net sales $1,508,000
Write-off of inventory due to obsolescence $92,800
Cost of goods sold 904,800
Depreciation expense omitted by accident in 2019 63,800
Selling expenses 75,400
Casualty loss 58,000
Administrative expenses 55,680
Cash dividends declared 52,200
Dividend revenue 23,200
Retained earnings at December 31, 2019 1,136,800
Interest revenue 8,120
Effective tax rate of 20% on all items draft a multiple-step income statement for 2020. Assume that 70,528 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.)
Q2. At December 31, 2019, Bonita Corporation had the following stock outstanding.
10% cumulative preferred stock, $100 par, 108,683 shares$10,868,300Common stock, $5 par, 4,020,360 shares20,101,800
During 2020, Bonita did not issue any additional common stock. The following also occurred during 2020.
Income from continuing operations before taxes $24,842,300
Discontinued operations (loss before taxes) $3,478,000
Preferred dividends declared $1,086,830
Common dividends declared $1,995,600
Effective tax rate 35%
Compute earnings per share data as it should appear in the 2020 income statement of Bonita Corporation.
Q3. Metlock Corporation reported the following for 2020: net sales $1,236,500, cost of goods sold $729,000, selling and administrative expenses $329,900, and an unrealized holding gain on available-for-sale debt securities $20,700. Draft a statement of comprehensive income using the one statement format.
Q4. Marigold Corporation reported the following for 2020: net sales $1,231,600, cost of goods sold $721,400, selling and administrative expenses $329,500, and an unrealized holding gain on available-for-sale debt securities $24,500.
Q5. Concord Co. reports the following information for 2020: sales revenue $752,600, cost of goods sold $502,200, operating expenses $81,200, and an unrealized holding loss on available-for-sale debt securities for 2020 of $54,300. It declared and paid a cash dividend of $12,620 in 2020.
Concord Co. has January 1, 2020, balances in common stock $354,900; accumulated other comprehensive income $81,300; and retained earnings $95,120. It issued no stock during 2020. (Ignore income taxes.)
Make a statement of stockholders' equity.