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Roland Carlson Please complete all 3 instructions (Prep statement of comprehensive, statement of stockholders' equity, and balance sheet) Instructions: Prepare a statement of comprehensive income.
Roland Carlson "Please complete all 3 instructions (Prep statement of comprehensive, statement of stockholders' equity, and balance sheet)
- Instructions: Prepare a statement of comprehensive income. Round EPS to 2 decimal places.
- Instructions: Prepare a statement of stockholders equity.
The following data is from the records of Roland Carlson Inc. for the year ended December 31, 2024.
Cost of goods sold | $ 850,000 |
Sales revenue | 1,900,000 |
Sales discounts | 30,000 |
General and administrative expenses | 240,000 |
Gain on sale of available-for-sale securities | 95,000 |
Gain on sale of discontinued operations | 75,000 |
Income taxes attributed to discontinued operations | 25,000 |
Loss on sale of building | 40,000 |
Loss on write-down of inventory to NRV | 6,000 |
Unrealized loss on trading securities | 47,000 |
Income tax expense | 187,000 |
Dividends declared (common stock) | 90,000 |
Dividends declared (preferred stock) | $ 40,000 |
Common stock outstanding | 1,600,000 shares |
Retained earnings, January 1 | $ 277,000 |
Unrealized gain on available-for-sale securities | 20,000 |
Income taxes attributed to unrealized gain on AFS securities | 5,000 |
Preferred stock, January 1 | 83,000 |
Common stock, January 1 | 160,000 |
Paid-in capital in excess of par value common stock, January 1 | 425,000 |
Accumulated other comprehensive income, January 1 | $ 73,000 |
- The company disposed of the discontinued operations component during the year, and the disposal represented a deliberate strategic shift which had a material effect on the companys operations.
- The company issued $46,000 of preferred stock during the year.
- The company did not issue any common stock during the year.
Balance sheet
3. Instructions: Prepare a classified balance sheet.
Here is the adjusted trial balance of Roland Carlson Inc. at December 31, 2024.
Debit | Credit | |
Cash and Cash Equivalents | 169,000 | |
Trading Securities | 265,000 | |
Fair Value Adjustment Trading Securities | 3,000 | |
Accounts Receivable | 42,000 | |
Allowance for Doubtful Accounts | 4,000 | |
Inventory | 214,000 | |
Adjustment to Reduce Inventory to NRV | 6,000 | |
Other Assets | 57,000 | |
Available-for-sale Securities | 948,000 | |
Fair Value Adjustment Available-for-sale Securities | 10,000 | |
Held-to-maturity Securities | 689,000 | |
Building | 4,208,000 | |
Accumulated Depreciation Building | 2,973,000 | |
Franchises | 456,000 | |
Notes Payable | 330,000 | |
Accounts Payable | 94,000 | |
Accrued Liabilities | 126,000 | |
Deferred Tax Liability | 37,000 | |
Bonds Payable | 2,000,000 | |
Discount on Bonds Payable | 123,000 | |
Preferred Stock | 129,000 | |
Common Stock | 160,000 | |
Paid-in Capital in Excess of Par Value - Common Stock | 425,000 | |
Retained Earnings | 277,000 | |
Accumulated Other Comprehensive Income | 73,000 | |
Dividends - Common Stock | 90,000 | |
Dividends - Preferred Stock | 40,000 | |
Sales | 1,900,000 | |
Sales Discounts | 30,000 | |
Cost of Goods Sold | 850,000 | |
General and Administrative Expenses | 240,000 | |
Gain on Sale of Available-for-sale Securities | 95,000 | |
Loss on Sale of Building | 40,000 | |
Loss due to Write-down of Inventory to NRV | 6,000 | |
Gain on Discontinued Operations | 75,000 | |
Income Tax Expense | 187,000 | |
Income Tax Expense, Discontinued Operations | 25,000 | |
Unrealized Loss on Trading Securities Income | 47,000 | |
Unrealized Gain on AFS Securities Equity | 20,000 | |
Deferred Income Tax Expense | 5,000 | |
Total | 8,734,000 | 8,734,000 |
Additional information:
- The fair values of securities portfolios are as follows:
- Trading securities $ 268,000
- Available-for-sale securities $ 938,000
- Held-to-maturity securities $ 601,000
- The net realizable value of inventory is $208,000.
- Other assets comprise of deposits and cash advances that will materialize in the next operating cycle.
- Notes payable is due in 7 months.
- Bonds payable are due in 6 years.
- Preferred stock has a par value of $1 per share. On the balance sheet date, there are 130,000 shares authorized, and 129,000 shares issued and outstanding.
- Common stock has a par value of $0.10 per share. On the balance sheet date, there are 5,000,000 shares authorized, and 1,600,000 shares issued and outstanding.
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