Reference no: EM131582894
Q1. The following balances were taken from the books of Maria Conchita Alonzo Corp. on December 31, 2014.
|
Interest revenue
|
$96,200
|
Accumulated depreciation-buildings
|
$38,200
|
|
Cash
|
61,200
|
Notes receivable
|
165,200
|
|
Sales revenue
|
1,390,200
|
Selling expenses
|
204,200
|
|
Accounts receivable
|
160,200
|
Accounts payable
|
180,200
|
|
Prepaid insurance
|
30,200
|
Bonds payable
|
110,200
|
|
Sales returns and allowances
|
160,200
|
Administrative and general expenses
|
107,200
|
|
Allowance for doubtful accounts
|
17,200
|
Accrued liabilities
|
42,200
|
|
Sales discounts
|
55,200
|
Interest expense
|
70,200
|
|
Land
|
110,200
|
Notes payable
|
110,200
|
|
Equipment
|
210,200
|
Loss from earthquake damage
(extraordinary item)
|
160,200
|
|
Buildings
|
150,200
|
Common stock
|
510,200
|
|
Cost of goods sold
|
631,200
|
Retained earnings
|
31,200
|
|
Accumulated depreciation-equipment
|
50,200
|
|
|
Assume the total effective tax rate on all items is 34%.
Prepare a multiple-step income statement; 100,400 shares of common stock were outstanding during the year.
Q2. Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014.
|
Cash
|
$52,300
|
|
Administrative expenses
|
100,100
|
|
Selling expenses
|
83,000
|
|
Net sales
|
553,700
|
|
Cost of goods sold
|
261,900
|
|
Cash dividends declared (2014)
|
22,100
|
|
Cash dividends paid (2014)
|
19,200
|
|
Discontinued operations (loss before income taxes)
|
40,600
|
|
Depreciation expense, not recorded in 2013
|
30,100
|
|
Retained earnings, December 31, 2013
|
97,600
|
|
Effective tax rate 30%
|
|
(a) Compute net income for 2014.
(b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Q3. At December 31, 2013, Shiga Naoya Corporation had the following stock outstanding.
|
10% cumulative preferred stock, $100 par, 108,240 shares
|
$10,824,000
|
|
Common stock, $5 par, 4,088,600 shares
|
20,443,000
|
During 2014, Shiga Naoya did not issue any additional common stock. The following also occurred during 2014.
|
Income from continuing operations before taxes
|
$23,835,000
|
|
Discontinued operations (loss before taxes)
|
$3,341,000
|
|
Preferred dividends declared
|
$1,082,400
|
|
Common dividends declared
|
$2,482,000
|
|
Effective tax rate
|
35%
|
Compute earnings per share data as it should appear in the 2014 income statement of Shiga Naoya Corporation.
Q4. Tim Mattke Company began operations in 2012 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2014, in accordance with other companies in its industry, Mattke changed its inventory pricing to FIFO. The pretax income data is reported below.
|
Year
|
Weighted-Average
|
FIFO
|
|
2012
|
$390,400
|
$414,800
|
|
2013
|
395,700
|
433,100
|
|
2014
|
419,100
|
469,200
|
(a) What is Mattke's net income in 2014? Assume a 35% tax rate in all years.
(b) The parts of this question must be completed in order. This part will be available when you complete the part above.
(c) The parts of this question must be completed in order. This part will be available when you complete the part above.
Q5. The following information is related to Dickinson Company for 2014.
|
Retained earnings balance, January 1, 2014
|
$985,900
|
|
Sales Revenue
|
26,256,000
|
|
Cost of goods sold
|
16,150,000
|
|
Interest revenue
|
74,300
|
|
Selling and administrative expenses
|
4,777,000
|
|
Write-off of goodwill
|
830,700
|
|
Income taxes for 2014
|
1,325,000
|
|
Gain on the sale of investments (normal recurring)
|
117,000
|
|
Loss due to flood damage-extraordinary item (net of tax)
|
398,900
|
|
Loss on the disposition of the wholesale division (net of tax)
|
444,500
|
|
Loss on operations of the wholesale division (net of tax)
|
94,300
|
|
Dividends declared on common stock
|
254,800
|
|
Dividends declared on preferred stock
|
90,900
|
Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2014, there were 499,600 shares of common stock outstanding all year.
Prepare a multiple-step income statement.