After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income
Question:
After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income statement for the year ended December 31, 2023, was prepared incorrectly. All amounts included in the statement are before tax (assume a rate of 40%). The company had 200,000 common shares issued and outstanding throughout the year as well as 70,000 $1.00 cumulative preferred shares. Dividends had not been paid for the past two years (2021 and 2022). Retained earnings at December 31, 2022, were $171,000.
Required
Prepare a corrected income statement, using a multi-step format, including earnings per share information. Round all earnings per share calculations to the nearest whole cent.
Online Hearing Inc. Income Statement December 31, 2023 Revenues: Sales $900,000 Gain on sale of discontinued operation (pre-tax) 120,000 Accumulated depreciation, equipment 22,500 Operating profit on discontinued operation (pre-tax) 318,000 $1,360,500 Expenses: Cost of goods sold Selling and administrative expenses Sales returns and allowances Loss on disposal of plant assets (pre-tax) Dividends Profit Earnings per share $240,000 90,000 7,000 40,000 47,500 424,500 $ 936,000 $ 4.68
Step by Step Answer:
ONLINE HEARING INC Income Statement For Year Ended December 31 2023 Net sales Co...View the full answer
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
Students also viewed these Business questions
-
After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income statement for the year ended December 31, 2014, was prepared incorrectly. All amounts...
-
After returning from vacation, the accountant of Online Hearing Inc. was dismayed to discover that the income statement for the year ended December 31, 2020, was prepared incorrectly. All amounts...
-
The income statement for Weatherford International Inc.s year ended December 31, 2014, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the...
-
Describe the three cases to consider when determining if a cost allocation is beneficial.
-
The following list includes activities that are performed in a physicians office. Classify each activity as value-added or non-value-added. For each non-value-added activity, state whether it can be...
-
An adverse opinion regarding a material weakness in internal controls is: A. generally viewed as a warning of financial or governance issues. B. the same thing as an adverse auditor opinion on the...
-
What are the purposes of the opinion paragraph in the auditor's report? Identify the most important informa tion included in the opinion paragraph. What is meant by the term "appropriate disclosed...
-
Ratio Computations and Effect of Transactions Presented below is information related to Leland Inc. (a) Compute the following ratios or relationships of Leland Inc. Assume that the ending account...
-
31) ESSAY. Write your answer in the space provided or on a separate sheet of paper. "It's close to a $40,000 loser and we ought to devote our efforts elsewhere," noted Cindy Mires, after reviewing...
-
Fitz Products Inc. reported $1,075,049 profit in 2023 and declared preferred dividends of $75,100. The following changes in common shares outstanding occurred during the year. Jan. 1 78,000 common...
-
How are earnings per share results calculated for a corporation with a simple capital structure?
-
For Exercises, use the vectors u = 2i + j, v = -3i - 10j, and w = i - 5j. Perform the indicated vector operations and state the answer in two forms: (a) As a linear combination of i and j and (b) In...
-
The goal of the ACA is to ensure that more Americans have access to affordable healthcare insurance. The costs associated with national health insurance will require more collaboration among...
-
How is a change in accounting estimate accounted for?
-
In a contract lawsuit, the following elements must be established: A valid executed contract Plaintiff performed as specified in the contract Defendant failed to perform as specified in the...
-
Assume that a company had traditionally expensed development costs but now satisfies capitalization criteria and thus has changed its policy. Explain how the change in development cost accounting...
-
Original jurisdiction is the authority of a court to first conduct a trial. a. Appellate jurisdiction is the authority of a court to hear appeals from trial court decisions.
-
This question is based on Externalities and the Coase Theorem on the book's MyEconLab at www.myecon-lab.com. Consider a steel producer that dumps one litre of toxic waste into a river for every tonne...
-
Simplify the expression. Assume that all variables are positive. 23VI1 2 V44 8
-
On March 1, 2017, JenStar Hydroponics Inc. issued at par an $80,000, 6%, three-year bond. Interest is to be paid quarterly beginning May 31, 2017. JenStars year-end is July 31. A partial payment...
-
Talent, a local HR consulting firm, has total partners equity of $760,000, which is made up of Hall, Capital, $600,000, and Reynolds, Capital, $160,000. The partners share profit/(losses) in a ratio...
-
On June 17, 2017, Bishop agrees to invest $30,000 into an online custom T-shirt print shop business for a 40% interest in total partnership equity. At the time Bishop is admitted, the existing...
-
. Task 2: Multi-Stage Shortest Path Problem: Solve this problem using the Greedy method and Dynamic Programming. (50 points) 3 2 4 7 5 4 3 6 7 6 1 5 2 9 5 2 6 3 3 8 6 8 2 S=1 S=2 S=3 S=4 S=5
-
Can someone experienced in html and javascript explain how to get the save button to save the results into the hours worked, and how to code the valid & invalid forms . Task name (text field) ...
-
I dont understand thi. Students Grades: Create a Java application in NetBeans called "Lab07" that prompts the user to enter a length of an array, and then prompts the user to enter that numb...
Study smarter with the SolutionInn App