Question
The following information is taken from the accounting records of Cullumber Corporation, a Canadian public company, for the year ended December 31, 2020. Accounts receivable
The following information is taken from the accounting records of Cullumber Corporation, a Canadian public company, for the year ended December 31, 2020.
| Accounts receivable | $93,000 | |
| Retained earnings, January 1, 2020 | 259,500 | |
| Loss on operation of discontinued operations (before tax) | 95,000 | |
| Sales revenue | 1,144,000 | |
| Cost of goods sold | 720,500 | |
| Selling expenses | 128,000 | |
| Cash | 62,000 | |
| Common shares (21,000 common shares outstanding) | 210,000 | |
| Dividend revenue | 17,800 | |
| Inventory | 125,000 | |
| Unearned revenue | 3,500 | |
| Land | 360,000 | |
| Interest expense | 17,500 | |
| Administrative expenses | 157,000 | |
| Notes payable (maturity 2026) | 200,000 | |
| Accounts payable | 50,000 | |
| Gain on disposal of discontinued operations (before tax) | 163,000 | |
| Depreciation expense | 45,000 | |
| Loss on disposal of equipment (before tax) | 10,000 |
Cullumber Corporation is subject to a 25% income tax rate. Prepare a multiple-step income statement in good form for Cullumber Corporation (earnings per share information is not required).
| Cullumber Corporation Income Statement For the year ended December 31, 2020December 31, 2020For the month ended December 31, 2020 | ||||
| Cost of Goods SoldGain on Operation of Discontinued Operations (Net of Tax)Gain on Disposal of Discontinued Operations (Net of Tax)Cash DividendInterest ExpenseDepreciation ExpenseSales RevenueLoss on Disposal of Discontinued Operations (Net of Tax)Loss on Operation of Discontinued Operations (Net of Tax)Dividend RevenueAdministrative ExpensesGain on Disposal of EquipmentLoss on Disposal of EquipmentIncome Tax ExpenseSelling Expenses | $ | |||
| Sales RevenueLoss on Disposal of EquipmentDividend RevenueCost of Goods SoldSelling ExpensesAdministrative ExpensesIncome Tax ExpenseInterest ExpenseLoss on Operation of Discontinued Operations (Net of Tax)Loss on Disposal of Discontinued Operations (Net of Tax)Gain on Disposal of Discontinued Operations (Net of Tax)Depreciation ExpenseCash DividendGain on Operation of Discontinued Operations (Net of Tax)Gain on Disposal of Equipment | ||||
| Income from Continuing Operations before Income TaxBeginning Balance, January 1Total Other Expenses and LossesGross Profit / (Loss) On SalesDiscontinued OperationsOther Expenses and LossesTotal Operating ExpensesEnding Balance, December 31Operating IncomeOther Revenue and GainsNet Income / (Loss)Income from Continuing OperationsOperating Expenses | ||||
| Other Revenue and GainsBeginning Balance, January 1Income from Continuing OperationsTotal Other Expenses and LossesOperating IncomeIncome from Continuing Operations before Income TaxDiscontinued OperationsGross Profit / (Loss) On SalesOperating ExpensesEnding Balance, December 31Net Income / (Loss)Total Operating ExpensesOther Expenses and Losses: | ||||
| Gain on Disposal of EquipmentInterest ExpenseLoss on Disposal of EquipmentGain on Operation of Discontinued Operations (Net of Tax)Dividend RevenueGain on Disposal of Discontinued Operations (Net of Tax)Loss on Operation of Discontinued Operations (Net of Tax)Sales RevenueSelling ExpensesCost of Goods SoldIncome Tax ExpenseAdministrative ExpensesCash DividendLoss on Disposal of Discontinued Operations (Net of Tax)Depreciation Expense | $ | |||
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
