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Presented below is information that relates to Halifax Limited for 2020: Accounts Payable 49,000 Accounts Receivable 78,000 Bond Payable600,000 Cash dividends declared on common shares34,000
Presented below is information that relates to Halifax Limited for 2020:
Accounts Payable 49,000
Accounts Receivable 78,000
Bond Payable600,000
Cash dividends declared on common shares34,000
Collections of credit sales$1,100,000
Cost of goods sold1,100,000
Equipment 85,000
Gain from transactions in foreign currencies (pre-tax)220,000
Inventory120,000
Loss on sale of equipment 350,000
Loss from early debt repayment 340,000
Loss resulting from calculation error on depreciation charge in 2019460,000
Other expenses120,000
Other revenues180,000
Proceeds from issue of Halifax common shares60,000
Retained earnings, January 1, 2020800,000
Sales1,900,000
Selling and administrative expenses290,000
Unrealized Gain FV-NI 20,000
Additional information to be included:
On September 1, 2020, Halifax sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above.
Instructions
In good form, prepare a multiple-step income statement for 2020. Assume a 20% income tax rate and that 20,000 common shares were outstanding during the year. Include Earnings Per Share.
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