Carter Huntt, accountant for Southern Harvest Foods, Inc., was injured in an auto accident. While he was
Question:
The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and some accounts do not belong on the income statement at all. Also, income tax (30%) has not been applied to all appropriate figures. Southern Harvest Foods issued 38,000 shares of common stock back in 2004 and held 8,000 shares as treasury stock all during the fiscal year 2014.
Requirement
1. Using the End-of-Chapter Summary Problem (pages 637638) as an example, prepare a corrected Income Statement for Southern Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Use the single-step format, which lists all revenues together and all expenses together. Also prepare the earnings- per- share section of the statement.
2. Using Exhibit 11- 2 (p. 631) as an example, prepare a Statement of Comprehensive Income for Southern Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Start with net income as computed in Requirement1.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas