E4-2, E4-9, E4-17

13,000 Increase (Decrease) $ (51,000) Cash $79.000 Accounts Payable 82,000 Accounts Receivable (net) 45.000 Bonds Payable 125,000 Inventory 127,000 Common Stock Investments (47,000) Paid-In Capital in Excess of Par-Common Stock Instructions e come for the current year, assuming that there were no entries in the Retained Earnings account except net income and a dividend declaration of $19,000 which was paid in the current year. E4-2 (LO2,4) (Compute Income Measures) Presented below is information related to Viel Company the end of its first year of operations. Sales revenue s $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on available for sale investments 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Dividends declared and paid 5,000 Instructions Compute the following: (a) income from operations, (b) net income, (c) comprehensive income, and (d) retained earning ance at December 31, 2017. (Ignore income tax effects.) E4-3 (L02,4) (Income Statement Items) Presented below are certain account balances of Paczki Products Co. Rent revenue - 6,500 Sales discounts $ 7,800 Interest expense 12,700 Selling expenses 99,400 Beginning retained earnings 114,400 Sales revenue 390,000 Ending retained earnings 125,000 Income tax expense Dividend revenue 31,000 71,000 Sales returns and allowances Cost of goods sold 184,400 12,400 Administrative expenses Allocation to noncontrolling interest 82,500 17,000 structions m the foregoing compute thuoll $ Administrative expenses 100,000 Selling expenses 80,000 Net sales 540,000 Cost of goods sold 210,000 Cash dividends declared (2017) 20,000 Cash dividends paid (2017) 15,000 Discontinued operations (loss before income taxes) 40,000 Depreciation expense, not recorded in 2016 30,000 Retained earnings, December 31, 2016 Effective tax rate 30% 90,000 Instructions (a) Compute net income for 2017 (b) Prepare a partial income statement beginning with income from continuing operations before income tax, and inci ing appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2 E4-9 (L03,4,5) (Multiple-Step Statement with Retained Earnings Statement Presented below is information relate Ivan Calderon Corp. for the year 2017. Net sales 10,000 Write-off of inventory due to obsolescence Cost of goods sold 780,000 $ 80,000 Depreciation expense omitted by accident in 2016 55,000 Selling expenses 65,000 Casualty loss 50,000 Administrative expenses 48,000 Cash dividends declared 45,000 Dividend revenue 20,000 Retained earnings at December 31, 2016 980,000 Interest revenue 7,000 Effective tax rate of 34% on all items Instructions (a) Prepare a multiple-step income statement for 2017. Assume that 60,000 shares of common stock are outstanding for entire year. (b) Prepare a separate retained earnings statement for 2017. E4-10 (L04) (Earnings per Share) The stockholders' equity section of Hendly Corporation appears below as of Decembe 2017. 8% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000 shares Common stock, $1.00 par, authorized and issued 10 million shares 10,000,000 Additional maid-in canital 4.500.000 5700 ecurities for 2010 Prepare a statement of comprehensive income, using lae income taxes and earnings per share.) 14-16 (L06,7) (Comprehensive Income) C. Reither Co. reports the following information for 2017: sales revenue sm o r-sale securities for of goods sold $500,000, operating expenses $80.000, and an unrealized holding loss on avat of $60,000. It declared and paid a cash dividend of $10,000 in 2017. ener Co. has January 1, 2017, balances in common stock $350,000; accumulated other comprehensive income se and retained earnings $90,000. It issued no stock during 2017 omprehensive income $50.000, Instructions Prepare a statement of stockholders' equity. E4-17 (L03,4,6,7) (Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale securities (net of tax) $15,000. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory S95,000 75,000 240,000 40,000 60,000 Cash dividends declared Retained earnings January 1, 2017 Cost of goods sold Selling ex Selling expenses Sales revenue $ 150,000 600,000 850,000 300,000 1,900,000 Shares outstanding during 2017 were 100,000. Instructions (a) Prepare a single-step income statement. (b) Prepare a comprehensive income statement for 2017, using the two statement format. (c) Prepare a retained earnings statement for 2017. PROBLEMS P4-1 (L03,4,6) (Multiple-Step Statement, Retained Earnings Statement) The following information son Company for 2017. information is related to Dickin Retained earnings balance, January 1, 2017