Prepare a multistep income statement for andrew company

Assignment Help Accounting Basics
Reference no: EM131810414

The Andrew Company, a seller of toy trains and cars has asked you to prepare a multistep income statement for the period ended December 31, 2016. The Trial Balance as it relates to the income statement accounts is as follows:

 

Dr

Cr

Sales Revenue

 

$3,000,000

Sales returns and allowances

$150,000

 

Cost of Goods Sold

$810,000

 

Selling Expenses

$400,000

 

Administrative Expenses

$240,000

 

Rent Revenue

 

$50,000

Loss on sale of machinery

$29,000

 

     

In addition on January 1, 2016 the company decided to sell its toy airplane division. It recorded a profit before tax of $250,000 up until September 31st when it sold the division to the Jake Company. Andrew Company recorded a loss on thesale of $325,000.

On July 12, 2016 a fire destroyed one of Andrew Company's warehouses. The loss totaled $400,000 and was considered unusual and infrequent in nature.

The tax rate is 34% During the year there were 100,000 shares of common stock outstanding.

Required:

• Prepare a multistep income statement for Andrew Company. Form counts!! Use proper headings.

• Include an EPS section separating Income from operations and discontinued operations.

• Please submit in excel. Handwritten assignments will lose 1 point.

Reference no: EM131810414

Questions Cloud

Manufacturing equipment for operations : VML Industries has need of specialized yarn manufacturing equipment for operations over the next 3 years
Discuss the cost categories that would be included : Identify and discuss the cost categories that would be included in the cost of the product for ?nancial reporting purposes.
What is the tax status of each of the following items : Fun, Inc. is a calendar-year accrual basis taxpayer. what is the tax status of each of the following items for the company's current year?
Firm after-tax interest rate : If the firm's after-tax interest rate is 9%, which alternative has the lower EAC and by how much?
Prepare a multistep income statement for andrew company : Include an EPS section separating Income from operations and discontinued operations
Tax problem with sunk cost and leverage : West Muskegon Machining and Manufacturing More complex inflation and tax problem with sunk cost and leverage.
Whats the future value of the same annuity due : Future Value of an Annuity Due If the future value of an ordinary, 6-year annuity is $6,900 and interest rates are 7 percent.
Find the probabilities that an individual will do : Find the probabilities that an individual will do the P(Fail both the first and second tests) and P(Fail three times in a row).
What must her salary be to have the same purchasing : If inflation is 4% each year, what must her salary be to have the same purchasing power in year 10? Year 20? Year 30? Year 40?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd