Question
I have been working on financial statement, but I do not know that I am on the right track or not. This is my assignment:
I have been working on financial statement, but I do not know that I am on the right track or not. This is my assignment:
Carr Company has the following ledger accounts and adjusted balances as of December 31, 2019.All accounts have normal balances.Carr's income tax rate is 20%.Carr has 300,000 shares of Common Stock authorized, 100,000 shares of Common Stock issued, and 95,000 shares of Common Stock outstanding.
Accounts Payable..................................58,500
Accounts Receivable.............................. 405,000
Accumulated Depreciation-Building............ 112,500
Accumulated Depreciation-Equipment..........90,000
Administrative Expenses.........................90,000
Allowance for Doubtful Accounts...............45,000
Bonds Payable...................................... 400,000
Building............................................1,125,000
Cash.................................................58,500
Common Stock....................................600,000
Cost of Goods Sold...............................855,000
Discount on Bonds Payable.....................10,000
Dividends..........................................30,000
Equipment.......................................... 435,000
Income from Operations of Division X........90,000
(Division X is a component of Carr Company)
Interest Revenue................................... 60,000
Inventory.............................................630,000
Land (held for future use)......................... 450,000
Land (used for building).......................... 247,500
Loss from Sale of Division X...........................180,000
(Division X is a component of Carr Company)
Loss on Sale of Investments..................... .. 22,500
Mortgage Payable ................................. 562,500*
Paid-In Capital in Excess of Par..................396,000
Prepaid Rent........................................22,500**
Retained Earnings, January 1, 2019............ 562,500
Sales Discounts..................................... 45,000
Sales Returns and Allowances.................... 75,000
Sales Revenue....................................2,302,500
Selling Expenses.................................. 292,500
Trademark..........................................67,500
Treasury Stock.....................................60,000
*$40,000 of the principal comes due in 2019.
**Two years rent on offsite document storage paid in advance.
How can I compute the EPS? Is the weighted average # share common stock outstanding is 95,000 shares? What should I do with other 300, 000 shares and 100,000 shares under stockholder's equity?
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