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Please help me correct the incorrect income statement. The account names may need to be switched in a different order, as well as numbers may
Please help me correct the incorrect income statement. The account names may need to be switched in a different order, as well as numbers may need to be changed.
The income statement for Weatherford International Inc.'s year ended December 31, 2020, was prepared by an inexperienced bookkeeper. As the new accountant, your immediate priority is to correct the statement. All amounts included in the statement are before tax (assume a rate of 25%). The company had 102,000 common shares issued and outstanding throughout the year, as well as 20,400 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31, 2019, were $329,800. Weatherford International Inc. Income Statement December 31, 2020 Revenues : Sales $1,157,000 Gain on sale of equipment 14,600 Interest income 6,760 Gain on sale of plant 141,800 Operating profit on discontinued operation 29, 140 $1,349,300 Expenses : Cost of goods sold $ 350,000 Selling and administrative expenses 181,000 Sales discounts 11,860 Loss on sale of discontinued operation 36,200 Dividends 122,000 701,060 Profit $ 648,240 Earnings per share $ 6.36 Required: Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.) Prepare a corrected income statement, including earnings per share information. (Negative answers should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.) WEATHERFORD INTERNATIONAL INC. Income Statement For Year Ended December 31, 2020 Other revenues and expenses Discontinued operations: Earnings per share of common shares outstanding Profit from continuing operations Loss from discontinued operations Profit Step by Step Solution
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