Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales

The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $21,500; cost of goods sold, $14,100; selling expense, $2,220; general and administrative expense, $1,120; dividend revenue from investments, $120; interest expense, $220. Income taxes have not yet been accrued. The companys income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the companys income statement every year. The companys controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount.

  1. Investments were sold during the year at a loss of $220. Foxworthy also had an unrealized loss of $120 for the year on investments. The unrealized loss represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income.
  2. One of the companys factories was closed during the year. Restructuring costs incurred were $1,200.
  3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $720 in 2021 prior to the sale, and its assets were sold at a loss of $1,960.
  4. A positive foreign currency translation adjustment for the year totaled $680.

Required: Prepare Foxworthys single, continuous statement of comprehensive income for 2021, including earnings per share disclosures. Use a multiple-step income statement format. Three million shares of common stock were outstanding throughout the year.

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

Implementing Change With Clinical Audit

Authors: Richard W. Baker, Hilary M. Hearnshaw, Noelle Robertson

1st Edition

0471982571, 978-0471982579

More Books

Students also viewed these Accounting questions

Question

How would you handle the difficulty level of the texts?

Answered: 1 week ago

Question

Discuss the importance of workforce planning.

Answered: 1 week ago

Question

Differentiate between a mission statement and a vision statement.

Answered: 1 week ago