(Multi-step Income, Retained Earnings) Presented below is information related to American Horse Company for 2004. Prepare a...
Question:
(Multi-step Income, Retained Earnings) Presented below is information related to American Horse Company for 2004. Prepare a multi-step income statement and a retained earnings statement. American Horse Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, American Horse sold the wholesale operations to Rogers Company. During 2004, there were 300,000 shares of common stock outstanding allyear.
Retained earnings balance, January 1, 2004 Sales for the year Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill (not tax deductible) Income taxes for 2004 Gain on the sale of investments (normal recurring) Loss due to flood damage-extraordinary item (net of tax) Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $980,000 25,000,000 17,000,000 70,000 4,700,000 820,000 905,000 110,000 390,000 440,000 90,000 250,000 70,000
Step by Step Answer:
American Horse Company Income Statement For the Year Ended December 31 2007 Sales Cost of goods sold ...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Accounting questions
-
Income Statement Presented below is information related to Webster Company ($000 omitted). Administrative expenses Officers salaries................... $4,900 Depreciation of office furniture and...
-
Presented below is information related to Russell Corporation for the month of January 2012. InstructionsPrepare the necessary closingentries. Cost of goods sold Freight-out Salaries and wages...
-
Presented below is information related to Gonzales Corporation for the month of January 2008. Instructions Prepare the necessary closingentries. Cost of goods sold $208,000 alary expense Freight-out...
-
A sphere of 80 mm diameter lies at a depth of 500 m in sea water. The bulk modulus of sphere is 200 GPa. If the specific weight of sea water is 10.3 kN/m, the decrease in the volume (in mm) of the...
-
Explain the three reasons the aggregate demand curve slopes downward.
-
On January 1, 2015, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year. Required: Assuming the market interest rate on the issue date is...
-
1.1 Globalization Risks for MNEs. Was globalization responsible for the slowdown of MNE business dur- ing the financial crisis of 2008?
-
Kenneth Corporation expects to incur indirect overhead costs of $72,000 per month and direct manufacturing costs of $18 per unit. The expected production activity for the first four months of 2013 is...
-
Chapter 6 question 3 I'm confused by this. Help Save & Exit Su Check my wo 3 Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas'...
-
1. How comparable are the two different methods? In what ways are they similar? In what ways are they different? 2. What are the positive and negative aspects of each approach that Shocker should...
-
(Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2004. Income tax applicable to income from continuing operations $187,000; income...
-
(Single-step Income, Retained Earnings, Periodic Inventory) Presented below is the trial balance of Mary J. Blige Corporation at December 31, 2004. A physical count of inventory on December 31...
-
Considering your answer to Exercise 79, which type of formula, empirical or molecular, can be obtained from elemental analysis that gives percent composition? Data in Exercise 79, Express the...
-
Distinguish among the following substantive tests of plant assets and indicate the assertion(s) to which each test pertains: a. Apply analytical procedures. b. Inspect plant assets. c. Examine title...
-
What circumstances pertaining to property, plant, and equipment may warrant the following assessments of inherent risk (IR)? a. Low for the existence or occurrence assertion. b. Moderate or high for...
-
Which of the following statements is generally correct about the competence of evidential matter? a. The auditors direct personal knowledge, obtained through observation and inspection, is more...
-
How practical is the workload approach to sales force size determination?
-
What factors should be considered by an auditor in specifying the acceptable level of detection risk for assertions pertaining to (a) merchandise inventory and (b) manufactured finished goods...
-
The Fig. 87 shows a critically damped spring-mass system undergoing single degree of freedom vibrations. If \(m=5 \mathrm{~kg}\) and \(k=20 \mathrm{~N} / \mathrm{m}\), the value of viscous damping...
-
What is the order p of a B + -tree? Describe the structure of both internal and leaf nodes of a B + -tree.
-
Figure P17.12 shows the surge control loop of a compressor. The condensate in the feed and recycle stream is drained from V-1105. Then the feed gas is compressed to 25 bar in a compressor and sent to...
-
Alice Foyle, M.D. (lessee), has a noncancelable 20-year lease with Brownback Realty, Inc. (lessor) for the use of a medical building. Taxes, insurance, and maintenance are paid by the lessee in...
-
George Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is...
-
Amirante Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $411,324,...
-
D) The cost of lighting and heating the restaurant. 2-The wages of materials handling personnel in a factory would usually be considered: Indirect labor Manufacturing overhead A No Yes Yes No Yes Yes...
-
The annual flows of earnings on foreign assets are reported in a country's current account, whereas the principal amounts (ie, the investment amounts) of financial assets traded between a country's...
-
Please answer with reason for all why the option is correct and why the other options are incorrect,, Please help with this Accounting type Question: The current ratio is ratio between: A . Current...
Study smarter with the SolutionInn App