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Publicado: 26 de octubre de 2011
Posting ID: 231589
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Business, Accounting/Business Analysis/Financial Reporting - Year 1
Holt Company: Prepare a Multiple-step Income statementMultiple-step income statement.
Presented below is information related to Holt Company.
Retaining earnings,December 31, 2006 $650,000 Sales 1,400,000
Selling and administrative expenses 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) 290,000
Cash dividends declared on commonstock 33,600
Cost of goods sold 780,000
Gain resulting from computation error on depreciation
charge in 2005(pre-tax) 520,000
Other revenue 120,000
Other expenses 100,000
Instructions
Prepare in good form a multiple-step income statement for theyear 2007. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.
* Created:
* Feb 25, 2009 7:51 pm
* Solution By OTA:
* Departed OTASolutiongo to problem
Income Statement
For period ending 31st Dec. 2006
Sales $1,400,000
Less:
Cost of Goods Sold $780,000
GrossProfit $620,000
Operating Expenses
Selling and Admin. Expenses $240,000
Total Operating Expenses $240,000
OperatingIncome $380,000
Non-Operating
Other revenue $120,000
Other expenses ($100,000)
Hurricane loss (pre-tax) on plant
(extraordinaryitem) ($290,000)
Gain resulting from computation
error on depreciation
charge in 2005...
Back to Study Guide
Problemgo to solution
Business, Accounting/Business Analysis/Financial Reporting - Year 1
Holt Company: Prepare a Multiple-step Income statementMultiple-step income statement.
Presented below is information related to Holt Company.
Retaining earnings,December 31, 2006 $650,000 Sales 1,400,000
Selling and administrative expenses 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) 290,000
Cash dividends declared on commonstock 33,600
Cost of goods sold 780,000
Gain resulting from computation error on depreciation
charge in 2005(pre-tax) 520,000
Other revenue 120,000
Other expenses 100,000
Instructions
Prepare in good form a multiple-step income statement for theyear 2007. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.
* Created:
* Feb 25, 2009 7:51 pm
* Solution By OTA:
* Departed OTASolutiongo to problem
Income Statement
For period ending 31st Dec. 2006
Sales $1,400,000
Less:
Cost of Goods Sold $780,000
GrossProfit $620,000
Operating Expenses
Selling and Admin. Expenses $240,000
Total Operating Expenses $240,000
OperatingIncome $380,000
Non-Operating
Other revenue $120,000
Other expenses ($100,000)
Hurricane loss (pre-tax) on plant
(extraordinaryitem) ($290,000)
Gain resulting from computation
error on depreciation
charge in 2005...
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