Name Problem Il Multiplestep income statememtPerpeiual Inven

Name Problem Il Multiple-step income statememt-Perpeiual Inventory-Presented below is informatrion related to Karie Company for the year 2014. Note that all the accounts may not be needed All numbers are prefax. (20 Points) 9:30 or 11:00 Quiz A .300,000 C/S Shares Issued 110,000 Administrative Expenses Unrealized LOSS on Available for Sale Securitie...(OCI) Loss resulting from Computation Error in Previous Year on 10,000 Shares Outstanding 100,000 Use shares outstanding for EPS 60,000 Treasury Shs 150,000 50,000 Depreciation Charge Dividend and Interest Revenue Realized Loss on Sale of Delivery Equipment ...(Nonoperational) 150,000 Discontinued Operations (loss)... Always at NET of taxes.........400,000 75,000 Unearned Revenue Don\'t get tricked by this B/S Account Cost of Goods Sold Sales Returns and Allowance Beginning Balance-Retained Earnings Beginning Balance-Accumulative Other Comprehensive Inc.. 50,000 2,000,000 150,000Similar to Retained Earnings .. 4,550,000 250,000 Sales Selling Expenses 50,000 Don\'t get tricked by this account … Bond Premium (bonds due 2025) 250,000 Cash Dividends Declared and Paid on Common Stock Cash Dividends Declared and Not Paid on Preferred Stock.... 100,000& Does it matter if t is paid or not? Assume a 30% tax rate. Answer the following questions. If possible, please show all work. Other Information: 1. Net Sale 2 Incosse From Oper . Total Gaiss and Losses (Noaoperational) EPS Income from continuing operations before Discontinued Oper EPS-(N- Dividendsyshares outhlanding s. 6. Net Income EPS EPS FOR QUESTIONS 7 TO 9, ASSUME NET INCOME IS $500,000 7. OCI -se number off the above trial balance.s 7,8, and 9 all Involve OCI (Total) Comprehensive Income 9. Ending Balance for Accumulative Comprebeasive IncomeS Accum C/A+OCI 10. Beginning Retained Earaings$2,000,000 Only three things here-PPA, NI Dividends -Ending Retained Earnings.

Solution

Multi-step Income statement Sales 4550000 Less: Sales Returns and Allowance -50000 1..Net sales 4500000 Less: Cost of Goods sold 2500000 Gross Profit 2000000 Less: Operating expenses: Selling expenses 250000 Administrative expenses 300000 Total operating expenses -550000 2..Income from operations 1450000 Non-operating (expenses)/income: Dividend & Interest revenue 50000 Realised loss on sale of Delivery Equipment -150000 3.. Total gains& losses(non-operational) -100000 Before tax income from continuing operations 1350000 Tax at 30%*1350000 -405000 4..Income from continuing operations(before discontinued operations) 945000 EPS=(945000-Pref. div.decl.100000)/100000= 8.45 5..Less:After-tax loss from discontinued operations -400000 -4.00 6.. Net Income 545000 EPS=(545000-Pref. div.decl.100000)/100000= 4.45 (Assuming Net income=500000----Given) Other Comprehensive Income 7..Unrealised loss on AFS -60000 8. Total comprehesive Income(500000-60000) 440000 9..Ending balance for AOCI(150000+440000) 590000 Figures as per to original question 10..Retained earnings Beginning balance 2000000 Add: Net Income 545000 Less: Equity& pref. dividends(250000+100000) -350000 Ending balance 2195000