Question
Khaled Corporation's capital structure consists of 50,000 ordin ary shares. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed
Khaled Corporation's capital structure consists of 50,000 ordinary shares. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed the following information:
SalesSAR1,100,000
Purchase discounts18,000
Purchases642,000
Loss on discontinued operations (net of tax)42,000
Selling expenses128,000
Cash60,000
Accounts receivable90,000
Share capital200,000
Accumulated depreciation180,000
Dividend revenue8,000
Inventory, January 1, 2011152,000
Inventory, December 31, 2011125,000
Unearned service revenue4,400
Accrued interest payable1,000
Land370,000
Patents100,000
Retained earnings, January 1, 2011290,000
Interest expense17,000
General and administrative expenses150,000
Dividends declared29,000
Allowance for doubtful accounts5,000
Notes payable200,000
Machinery and equipment450,000
Materials and supplies40,000
Accounts payable60,000
The amount of income taxes applicable to ordinary income was SAR48,600, excluding the tax effect of the discontinued operations loss, which amounted to SAR18,000.
Instructions
(a)Prepare an income statement. (2 marks)
Kindly please provide steps or explaination
Khaled Corporation's capital structure consists of 50,000 ordinary shares. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed the following information:
SalesSAR1,100,000
Purchase discounts18,000
Purchases642,000
Loss on discontinued operations (net of tax)42,000
Selling expenses128,000
Cash60,000
Accounts receivable90,000
Share capital200,000
Accumulated depreciation180,000
Dividend revenue8,000
Inventory, January 1, 2011152,000
Inventory, December 31, 2011125,000
Unearned service revenue4,400
Accrued interest payable1,000
Land370,000
Patents100,000
Retained earnings, January 1, 2011290,000
Interest expense17,000
General and administrative expenses150,000
Dividends declared29,000
Allowance for doubtful accounts5,000
Notes payable200,000
Machinery and equipment450,000
Materials and supplies40,000
Accounts payable60,000
The amount of income taxes applicable to ordinary income was SAR48,600, excluding the tax effect of the discontinued operations loss, which amounted to SAR18,000.
Instructions
(a)Prepare an income statement. (2 marks)
Kindly please provide steps or explaination
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Financial Accounting
Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie
9th Edition
1118608208, 978-1118608203
