Solution-Prepare a multiple-step income statement

Prepare a multiple-step income statement

Assignment Help Accounting Basics

Reference no: EM133064610

Question - Umm Al Quwain Corporation's capital structure consists of 100,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

Net Sales revenue

Cost of goods sold

Purchases

Purchase discounts

Purchase return & allowance

Beginning Inventory, January 1, 2020

Ending Inventory, December 31, 2020

Selling expenses

Administrative expenses

Dividend revenue

Interest expense

Dividends declared

Earthquake loss (net of tax)

Unearned service revenue

Interest payable

Land

Patents

Accounts receivable

Accounts payable

Cash

$2,000,000

900,000

850,000

18,000

32,000

250,000

150,000

120,000

180,000

25,000

15,000

70,000

9,000

4,121

1,999

370,814

111,222

90,000

60,000

Retained earnings, January 1, 2020

14,000

The amount of income taxes applicable to ordinary income was $30,000, excluding the tax effect of the earthquake loss which amounted to $3,000.

Required -

1. Compute the amount of cost of goods sold.

2. Prepare a multiple-step income statement for 2020.

3. Compute earnings per share (EPS).

4. Prepare retained earnings statement for 2020.

Reference no: EM133064610

Questions Cloud

Explain a contractor estimating and accounting systems : Question - Explain a contractor's estimating and accounting systems. What are estimating and accounting systems and how are they used

Global interaction-finance : Increased global interaction has been promoted by advanced technology in communication, ideas and culture, which largely encourages

What is the bond coupon rate : Suppose a five-year, $1000 bond with annual coupons has a price of $900 and a yield maturity of 6%. What is the bond's coupon rate

Calculate the intrinsic value at this price : Assume in this case that the ABC common trades at $35 a share (all other factors remain the same). Calculate the intrinsic value at this price

Prepare a multiple-step income statement : The amount of income taxes applicable to ordinary income was $30,000, Prepare a multiple-step income statement for 2020

Presentation on marketing strategy for cineplex : Prepare Presentation on Marketing Strategy for Cineplex - What is Cineplex selling and What quadrant of Ansoff method Cineplex falls on

Leadership style-intrinsic value of human capital : What is your own leadership style? During the briefing, how will you use your leadership style to illustrate the intrinsic value of human capital?

Organization of compensation plan : What is the role and benefit to an organization of compensation plan? Provide minimum of 3 factors to consider in identifying the needs of compensation package

How many units must be sold to break-even : Question - Tim Taylor has written a self improvement book that has the following cost characteristics: How many units must be sold to break-even

User Account

All Pages

Prepare a multiple-step income statement

Reference no: EM133064610

Reference no: EM133064610

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT