Accounting 550 week 2 homework assignment 2017
Subject: Business / Accounting
Chapter 4: E4-7, E4-13 & P4-1
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Chapter 4: E4-7
E4-7(LO2,3,4)(Multiple-Step and Single-Step Statements)The accountant of Latifa Shoe Co. has piled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2017.
Market appreciation on land above cost
Salaries and wages expense (selling)
Salaries and wages expense (administrative)
Other administrative expenses
Cost of goods sold
Depreciation on plant assets (70% selling, 30% administrative)
Cash dividends declared
There were 20,000 shares of common stock outstanding during the year.
(a)Prepare a multiple-step income statement.
(b)Prepare a single-step income statement.
(c)Which format do you prefer? Discuss.
E4-13(LO4)(Earnings per Share)At December 31, 2016, Shiga Naoya Corporation had the following stock outstanding.
10% cumulative preferred stock, $100 par, 107,500 shares
Common stock, $5 par, 4,000,000 shares
During 2017, Shiga Naoya did not issue any additional common stock. The following also occurred during 2017.
Income from continuing operations before taxes
Discontinued operations (loss before taxes)
Preferred dividends declared
Common dividends declared
Effective tax rate
Compute earnings per share data as it should appear in the 2017 income statement of Shiga Naoya Corporation. (Round to two decimal places.)
P4-1(LO3,4,6)(Multiple-Step Statement, Retained Earnings Statement)The following information is related to Dickinson Company for 2017.
Retained earnings balance, January 1, 2017
Cost of goods sold
Selling and administrative expenses
Write-off of goodwill
Income taxes for 2017
Gain on the sale of investments
Loss due to flood damage
Loss on the disposition of the wholesale division (net of tax)
Loss on operations of the wholesale division (net of tax)
Dividends declared on common stock
Dividends declared on preferred stock
Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2017, there were 500,000 shares of common stock outstanding all year.
Prepare a multiple-step income statement and a retained earnings statement.