Carter Huntt, accountant for Southern Harvest Foods, Inc., was injured in an auto accident. While he was

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Carter Huntt, accountant for Southern Harvest Foods, Inc., was injured in an auto accident. While he was recuperating, another, inexperienced employee prepared the following income statement for the fiscal year ended June 30, 2014:

Carter Huntt, accountant for Southern Harvest Foods, Inc., was injured

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 637€“638) 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
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...
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Financial Accounting

ISBN: 978-0133427530

10th edition

Authors: Walter Harrison, Charles Horngren, William Thomas

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