i think some of the accounts I put in are wrong, would like to see how to complete the problem, any work shown would be very helpful, thanks
Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $122,000 Operating expenses $25,700 Interest expense 4,900 Common stock, $5 par 5,500 Cost of goods sold 62,000 Retained earnings, 1/1/2019 42,200 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.18 per share was declared and paid. 2. Land was sold at a pretax gain of $7,100. 3. Division X (a major component of the company) was sold at a pretaz gain of $4,600. It had incurred a $9,450 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,390 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $90,000 Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places. HUFF COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Sales (net) 122.000 Cost of goods sold 62.000 Gross profit 60,000 Operating expenses 25.700 Operating income 34.300 Other items Gain on sale of land 7.100 Pretax income from continuing operations 4.600 Pretax income from continuing operations 4,600 Interest expense -4,900 6,800 Loss from operations of discontinued division X (net of income tax credit) 9,450 Income tax expense Income from continuing operations Results from discontinued operations Components of Income Earnings per Common Share 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, 1/1/2019 Income tax expense Income from continuing operations Results from discontinued operations Components of Income Earnings per Common Share 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, 1/1/2019 3. Compute the 2019 return on common equity. Round to one decimal place. % The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $122,000 Operating expenses $25,700 Interest expense 4,900 Common stock, $5 par 5,500 Cost of goods sold 62,000 Retained earnings, 1/1/2019 42,200 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.18 per share was declared and paid. 2. Land was sold at a pretax gain of $7,100. 3. Division X (a major component of the company) was sold at a pretax gain of $4,600. It had incurred a $9,450 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,390 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places. HUFF COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Sales (net) 122.000 Cost of goods sold 62.000 Gross profit 60,000 Operating expenses 25,700 Operating income 34.300 Other items Gain on sale of land 7.100 Pretax income from continuing operations 4.600 Interest expense 4.900 6,800 9.450 Loss from operations of discontinued division X (net of income tax credit) Income tax expense Income from continuing operations Results from discontinued operations DI Components of Income Earnings per Common Share 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, 1/1/2019 3. Compute the 2019 return on common equity. Round to one decimal place. %
