Comprehensive: Income Statement and Supporting Schedules The following is a partial list of the account balances,...
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Comprehensive: Income Statement and Supporting Schedules The following is a partial list of the account balances, after adjustments, of the Silvoso Company on December 31, 2019: Depreciation Expense: Buildings and Office Equipment $ 14,500 Sales Commissions and Salaries 18,200 Inventory, January 1, 2019 37,800 Sales Supplies Used 5,600 Retained Earnings, January 1, 2019 83,700 Purchases Returns and Allowances 6,200 Bad Debts Expense 2,700 Transportation-in Sales Discounts Taken Purchases Delivery Expense 13,500 4,900 173,000 7,700 Office Supplies Expense 1,400 Common Stock, $10 par 80,000 Loss on Sale of Office Equipment (pretax) 5,000 Insurance and Property Tax Expense 8,500 Sales 328,600 Rent Revenue 6,900 Office and Administrative Salaries Expense 32,000 Promotion and Advertising Expense 17,000 Purchases Discounts Taken 4,100 Depreciation Expense: Sales Equipment 9,600 Interest Expense 3,700 The following information is also available: The following information is also available: 1. The company declared and paid a $0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019 ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of $12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a component of the company) had incurred a pretax operating loss of $8,700. Division R was sold at a pretax gain of $10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals $4,230. The breakdown is as follows: Income Tax Expense (Credit) Related to Amount Continuing income Operating loss of Division R Gain on sale of Division R Loss from tornado $ 7,440 (2,610) 3,000 (3,600) $ 4,230 6. The company had average Shareholders' Equity of $150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. Enter all amounts as positive numbers. SILVOSO COMPANY For Year Ended December 31, 2019 Schedule 1: Cost of Goods Sold Inventory, 1/1/2019 Purchases Less: Purchases returns and allowances Add: Purchases discounts taken Less: Inventory, 12/31/2019 37,800 SILVOSO COMPANY For Year Ended December 31, 2019 Schedule 1: Cost of Goods Sold Inventory, 1/1/2019 Purchases Less: Purchases returns and allowances Add: Purchases discounts taken Less: Inventory, 12/31/2019 Cost of goods sold Schedule 2: Selling Expenses Total selling expenses Schedule 3: General and Administrative Expenses 37,800 Total general and administrative expenses Schedule 4: Depreciation Expense Total depreciation expense 2. Prepare a multiple-step income statement for the year ended December 31, 2019 for the Silvoso Company. Round earnings per share computations to two decimal places. SILVOSO COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Operating expenses Total operating expenses Other items SILVOSO COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Operating expenses Total operating expenses Other items Q Results from discontinued operations Results from discontinued operations Components of Income EPS 3. Prepare a statement of Retained Earnings for the year ended December 31, 2019. SILVOSO COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 4. Next Level What was Silvoso's return on common equity for 2019? Round to two decimal places. Return on Shareholders' Equity = % Comprehensive: Income Statement and Supporting Schedules The following is a partial list of the account balances, after adjustments, of the Silvoso Company on December 31, 2019: Depreciation Expense: Buildings and Office Equipment $ 14,500 Sales Commissions and Salaries 18,200 Inventory, January 1, 2019 37,800 Sales Supplies Used 5,600 Retained Earnings, January 1, 2019 83,700 Purchases Returns and Allowances 6,200 Bad Debts Expense 2,700 Transportation-in Sales Discounts Taken Purchases Delivery Expense 13,500 4,900 173,000 7,700 Office Supplies Expense 1,400 Common Stock, $10 par 80,000 Loss on Sale of Office Equipment (pretax) 5,000 Insurance and Property Tax Expense 8,500 Sales 328,600 Rent Revenue 6,900 Office and Administrative Salaries Expense 32,000 Promotion and Advertising Expense 17,000 Purchases Discounts Taken 4,100 Depreciation Expense: Sales Equipment 9,600 Interest Expense 3,700 The following information is also available: The following information is also available: 1. The company declared and paid a $0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019 ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of $12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a component of the company) had incurred a pretax operating loss of $8,700. Division R was sold at a pretax gain of $10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals $4,230. The breakdown is as follows: Income Tax Expense (Credit) Related to Amount Continuing income Operating loss of Division R Gain on sale of Division R Loss from tornado $ 7,440 (2,610) 3,000 (3,600) $ 4,230 6. The company had average Shareholders' Equity of $150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. Enter all amounts as positive numbers. SILVOSO COMPANY For Year Ended December 31, 2019 Schedule 1: Cost of Goods Sold Inventory, 1/1/2019 Purchases Less: Purchases returns and allowances Add: Purchases discounts taken Less: Inventory, 12/31/2019 37,800 SILVOSO COMPANY For Year Ended December 31, 2019 Schedule 1: Cost of Goods Sold Inventory, 1/1/2019 Purchases Less: Purchases returns and allowances Add: Purchases discounts taken Less: Inventory, 12/31/2019 Cost of goods sold Schedule 2: Selling Expenses Total selling expenses Schedule 3: General and Administrative Expenses 37,800 Total general and administrative expenses Schedule 4: Depreciation Expense Total depreciation expense 2. Prepare a multiple-step income statement for the year ended December 31, 2019 for the Silvoso Company. Round earnings per share computations to two decimal places. SILVOSO COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Operating expenses Total operating expenses Other items SILVOSO COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Operating expenses Total operating expenses Other items Q Results from discontinued operations Results from discontinued operations Components of Income EPS 3. Prepare a statement of Retained Earnings for the year ended December 31, 2019. SILVOSO COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 4. Next Level What was Silvoso's return on common equity for 2019? Round to two decimal places. Return on Shareholders' Equity = %
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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