Blackboard Homework 41 Assignment Instructions Using the acc

Blackboard Homework 4-1 Assignment Instructions: Using the account information on the following page, prepare a multiple-step income statement and a statement of retained earnings. To qualify for full points, your assignment must meet the following minimum requirements: (1) The documents must be typed; (2) Both statements must include a proper heading (3) The income statement must properly display earnings per share; (4) You have not been given a total for cost of goods sold. The income statement must show the calculation of cost of goods sold within the statement itself (5) Bring two copies of the assignment on the due date, to ensure that you have a copy available for grading. ACCOUNTBALANCESATDECEMBER31,209 and Wages 600,000 stock 9.500,000 1,000,000 and 10 000.000 and Wages ative 180.000 90,000 Gain on Saleof 54000 January 1,500,000 # common shares ax rate

Solution

4-1

4-2

COGS Detailed break-up
Inventory Jan1			1850000
Purchases	4580000
Add:Freight-in	80000
Less:Purchase discounts	20000
Less:Purchase returns	17800
Net purchases		4622200
Add:Freight out		30000
Cost of goods available for sale			4652200
Less:Inventory Dec31			1000000
COGS			5502200