Accounting

Help Save & Exit Submit The income statement for Weatherford International Inc's year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts Included in the statement are before tax (assume a rate of 30%). The company had 118,000 common shares issued and outstanding throughout the year, as well as 23,600 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $337,800. Weatherford International Inc. Income Statement Revenues: December 31, 2020 Sales Gain on sale of equipment $1,197,020 16, 200 Interest income Gain on sale of plant 7,080 143,400 Operating profit on discontinued operation 29,940 $1,393,620 Expenses: Cost of goods sold $ 366,090 Selling and administrative expenses 189,600 Sales discounts 12,660 Loss on sale of discontinued operation 37,800 Dividends 138,0ee 743,460 Profit $ 650,160 Earnings per share 5.51