Question
At the end of 2019, Wyatt Companys accountant presented you with the following account balances just prior to the preparation of the financial statements. Rent
At the end of 2019, Wyatt Companys accountant presented you with the following account balances just prior to the preparation of the financial statements.
Rent revenue $30,000
Interest expense 15,000
Gain on sale of Land 10,000
Salaries and wages expense (selling) 104,000
Supplies (selling) 18,000
Salaries and wages expense (administrative) $134,000
Other administrative expenses 51,000
Cost of goods sold 480,000
Net sales 980,000
Depreciation on plant assets (70% selling, 30% administrative) 70,000
Cash dividends declared 20,000
Wyatt Corp. has 100,000 shares of common stock outstanding.
In 2019. Additional transactions that occurred in 2019 and not included in the balances above are as follows. In 2019, Wyatt Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring.
The company discontinued operations of one of its subsidiaries during the current year at a loss of $60,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $20,000 before taxes; the loss from disposal of the subsidiary was $40,000 before taxes.
Requirements: Analyze the above information and prepare a multiple-step income statement for the year 2019. Include a presentation for earnings per share as it should be shown on the face of the income statement. Assume a total effective tax rate of 40% on all items.) Prepare a Statement of retained earnings for Wyatt Company.
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