Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales revenue Cost of goods sold Adeinistrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 14.00 2.2.3.0.0 30.

image text in transcribed
image text in transcribed
image text in transcribed
Sales revenue Cost of goods sold Adeinistrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 14.00 2.2.3.0.0 30. 795.000 30. 2.000 1. 212.00 20 12. On July 1, 2021, the company adopted a plan to discontinue a division that que es component of any as defined by GALP The assets of the component were sold on September 30, 2021. for $72,000 senanther book o Results of cars for the component (included in the above account balances were as follows: Sales revenu Costa Roos deinistration Selling Operatine Incore before takes 5.00 120 TES 5, LS 4. In addition to the account balonces above several events occurred during 2021 shove not yet been in the hove account LAfire coured 556000 in uninsured damages to the main office building. There was considered to be an unutul vent 2. Inventory that had con $46.000 had become obsole because cometto introduced a better product. They written down for its screp value of $6,000 Income taxes have not yet been recorded Required: Prepare a multiple step Income strement for the Reed Company for 2021. thong 2020 information in comparative format including income to computed or 25% on EPS disclosures assuming 500.000 shares of outstanding common rock (Amount to be deducted should be indicated with a minus on. Round EPS answers to 2 decimal paces) REED COMMY Comparte For the Year 2000 GEN CE 18.000 . ca LA Selected information about income statement accounts for the Reed Company is presented below he company's fiscal year ends on December 31 Sales revenue Cost of goods sold Administrative expense Selling expense interest revenud Theret expense Losion sale of assets of discontinued component 21 2020 14,700.000 5.900.ee 2,520.00 260.00 000 35.000 420000 1362.000 150.000 LED 212 2012 On July 2021, the company doprede plan to discontinue division the qualities os component of an ention defined by GAAR The assets of the component were sold on September 30 2021. $72.000 less than the book le. Results of operations for the component included in the above account balances were as follow BURN UU Salve Cod Minista Step Operating ELEMINE In addition to the account balances ODO. Atverts occurred during 2021hs have not yet been rected the above accounts: 1. A fire Cound $50,000 uninsured amage to the main orice building. There was considered to be an unusual event Inventory that had cost $46,000 had become obsolete becouse a competitor introduced a better product. The inventory written down to scrap blue of $6.000 3. Income taxes have not yet been recorded Required: Prepare a multiple step income statement for the Reed Company for 2021. showing 2020 information in comparative format including income computed 25% and EPS disclosures Ossuming 500,000 shares of outstanding common stock (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places) Answer is not complete. REED COMPANY Comparative Income Statements For the Years Ended December 31 Sales revenue 2021 2020 5 $ 4,240.000 3.240 000 2600,000 1704 000 1,640,000 1536,000 O Cost of goods sold Gross profit loss) Operating expenses Administrative expense Selling expense Loss on building (fire damage) Loss on inventory write-down 689,000 336.000 olo OOOO 804.000 394.000 56.000 40,000 000 1,294.000 346000 1.025.000 511,000 O Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Total other income.net Income from continuing operations before income taxes income tax expense Income from.continuing operations Discontinued operations Income from operations of discontinued component income tax bent expense) Income foss) on discontinued operations Net income Earrings per share Income from continuing operations income on discontinued operation Netcome 156,000 146.000 (212.000) (212.000) (56.000) 66.000) 290,000 445.000 72.500 111.250 217.500 (14,000 Olo (14,000) 520000 0 15330,00 OUT OO DLS 1002) aere to search O RI Sales revenue Cost of goods sold Adeinistrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 14.00 2.2.3.0.0 30. 795.000 30. 2.000 1. 212.00 20 12. On July 1, 2021, the company adopted a plan to discontinue a division that que es component of any as defined by GALP The assets of the component were sold on September 30, 2021. for $72,000 senanther book o Results of cars for the component (included in the above account balances were as follows: Sales revenu Costa Roos deinistration Selling Operatine Incore before takes 5.00 120 TES 5, LS 4. In addition to the account balonces above several events occurred during 2021 shove not yet been in the hove account LAfire coured 556000 in uninsured damages to the main office building. There was considered to be an unutul vent 2. Inventory that had con $46.000 had become obsole because cometto introduced a better product. They written down for its screp value of $6,000 Income taxes have not yet been recorded Required: Prepare a multiple step Income strement for the Reed Company for 2021. thong 2020 information in comparative format including income to computed or 25% on EPS disclosures assuming 500.000 shares of outstanding common rock (Amount to be deducted should be indicated with a minus on. Round EPS answers to 2 decimal paces) REED COMMY Comparte For the Year 2000 GEN CE 18.000 . ca LA Selected information about income statement accounts for the Reed Company is presented below he company's fiscal year ends on December 31 Sales revenue Cost of goods sold Administrative expense Selling expense interest revenud Theret expense Losion sale of assets of discontinued component 21 2020 14,700.000 5.900.ee 2,520.00 260.00 000 35.000 420000 1362.000 150.000 LED 212 2012 On July 2021, the company doprede plan to discontinue division the qualities os component of an ention defined by GAAR The assets of the component were sold on September 30 2021. $72.000 less than the book le. Results of operations for the component included in the above account balances were as follow BURN UU Salve Cod Minista Step Operating ELEMINE In addition to the account balances ODO. Atverts occurred during 2021hs have not yet been rected the above accounts: 1. A fire Cound $50,000 uninsured amage to the main orice building. There was considered to be an unusual event Inventory that had cost $46,000 had become obsolete becouse a competitor introduced a better product. The inventory written down to scrap blue of $6.000 3. Income taxes have not yet been recorded Required: Prepare a multiple step income statement for the Reed Company for 2021. showing 2020 information in comparative format including income computed 25% and EPS disclosures Ossuming 500,000 shares of outstanding common stock (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places) Answer is not complete. REED COMPANY Comparative Income Statements For the Years Ended December 31 Sales revenue 2021 2020 5 $ 4,240.000 3.240 000 2600,000 1704 000 1,640,000 1536,000 O Cost of goods sold Gross profit loss) Operating expenses Administrative expense Selling expense Loss on building (fire damage) Loss on inventory write-down 689,000 336.000 olo OOOO 804.000 394.000 56.000 40,000 000 1,294.000 346000 1.025.000 511,000 O Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Total other income.net Income from continuing operations before income taxes income tax expense Income from.continuing operations Discontinued operations Income from operations of discontinued component income tax bent expense) Income foss) on discontinued operations Net income Earrings per share Income from continuing operations income on discontinued operation Netcome 156,000 146.000 (212.000) (212.000) (56.000) 66.000) 290,000 445.000 72.500 111.250 217.500 (14,000 Olo (14,000) 520000 0 15330,00 OUT OO DLS 1002) aere to search O RI

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners

Authors: Kokab Rahman

1st Edition

149479294X, 978-1494792947

More Books

Students also viewed these Accounting questions