The following are selected account balances of the Albertson Company as of December 31, 2007: Purchases (net)
Question:
The following are selected account balances of the Albertson Company as of December 31, 2007:
Purchases (net) ..............$63,000
Merchandise inventory, January 1, 2007 .... 20,000
Gain on sale of equipment ......... 5,000
Sales (net) ................ $100,000
Operating expenses ........... 22,000
Extraordinary loss (pretax) ........ 8,000
The merchandise inventory on December 31, 2007 is $31,000. Ten thousand shares of common stock have been outstanding the entire year. The company uses a periodic inventory system.
Required
Assuming a 30% income tax rate on all items of income, prepare a 2007 income statement for Albertson Company using
(1) A multiple-step format, and
(2) A single-step format.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
1 ALBERTSON COMPANY Income Statement For Year Ended December 31 2007 Sales net 100000 Cost of goods sold Inventory 112007 20000 Add Purchases net 6300...View the full answer
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
