The following balances were taken from the books of Alonzo Corp. on December 31, 2017.
Interest revenue $ 86,000 Accumulated depreciation—equipment $ 40,000
Cash 51,000 Accumulated depreciation—buildings 28,000
Sales revenue 1,380,000 Notes receivable 155,000
Accounts receivable 150,000 Selling expenses 194,000
Prepaid insurance 20,000 Accounts payable 170,000
Sales returns and allowances 150,000 Bonds payable 100,000
Allowance for doubtful accounts 7,000
Administrative and general expenses 97,000
Sales discounts 45,000 Accrued liabilities 32,000
Land 100,000 Interest expense 60,000
Equipment 200,000 Notes payable 100,000
Buildings 140,000 Loss from earthquake damage 150,000
Cost of goods sold 621,000 Common stock 500,000
Retained earnings 21,000
Assume the total effective tax rate on all items is 34%.
Instructions
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
Answers
answer:
100%
Alonzo Corp. Income Statement For the year ended December 31, 2017 Sales Sales revenue 1380000 Less: Sales discounts 45000 Less: Sales returns and allowances 150000 195000 Net sales 1185000 Cost…
Explanation:
The following balances were taken from the books of Alonzo Corp. on December 31, 2017. Interest revenue $86,000 Accumulated depreciation—equipment $40,000 Cash 51,000 Accumulated depreciation—buildings 28,000 Sales revenue 1,380,000 Notes receivable 155,000 Accounts receivable 150,000 Selling expenses 194,000 Prepaid insurance 20,000 Accounts payable 170,000 Sales returns and allowances 150,000 Bonds payable 100,000 Allowance for doubtful accounts 7,000 Administrative and general expenses 97,000 Sales discounts 45,000 Accrued liabilities 32,000 Land 100,000 Interest expense 60,000 Equipment 200,000 Notes payable 100,000 Buildings 140,000 Loss from earthquake damage 150,000 Cost of goods sold 621,000 Common stock 500,000 Retained earnings 21,000 Assume the total effective tax rate on all items is 34%. Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)