Chapter 2 Additional Problem The following information is fr

Chapter 2 Additional Problem: The following information is from the books of Trying to Get This Corp. All balances are as of December 31, 2017 unless otherwise indicated. Prepare an Income Statement Statement of Owners Equity and a Balance Sheet for the Year Ended December 31, 2017 Be sure and calculate earnings per share on the Income Statement. $ 42,000 58,000 158,000 Merchandise inventory Mortgage note payable Sales 84,000 12,000 22,000 Building and equipment Rent expense Cash Depreciation expense Accounts payable Salaries expense Retained earnings, 01/01/17 Accumulated depreciation Utilities expense nterest expense ncome taxes payable ost of goods sold come tax expense dvertising expense ccounts receivable vidends declared and paid mmon stock (7,000 shares issued) 7,000 15,000 28,000 21,500 26,000 8,000 5,000 3,000 58,000 14,000 10,000 20,000 6,500 35,000

Solution

1,42,000

Earnings per Share = Earnings avaiable for equity shareholders / No. Of shares outstanding

= $16,000/ 7000 Shares

= $2.29 per Share

Trying to Get This Corp
Income Statement
for Month Ended December 31 2017
Revenues
Sales	1,58,000
		1,58,000
Expenses
Cost of Good Sold	58,000
Depreciation	7,000
Utilies Expense	8,000
Salary Expense	28,000
Rent Expense	12,000
Advertising expense	10,000
Interest Expense	5,000
Income tax Expense	14,000
Total Expenses		1,42,000
Net income		16,000
Trying to Get This Corp
Statement of Retained Earnings
for Month Ended December 31 2017
Retained earnings, 01/01/17		21,500
Net income		16,000
Total Retained earnings		37,500
Less: Dividend paid		6,500
Retained Earnings, 31/12/2017		31,000