Problem 4-19 (IAA) Empress Company provided the following data for the current year: Retained earnings, January 1 Dividends declared Sales Dividend income Inventory, January 1 Purchases Salaries Contribution to employees' pension fund Delivery Miscellaneous expense Doubtful accounts expense Depreciation expense Loss on sale of investment Income from discontinued operation, net of tax Income tax expense Inventory on December 31 at cost Net realizable value of inventory 3,000,000 1,000,000 8,400,000 100,000 1,000,000 3,700,000 1,540,000 300,000 200,000 120,000 10,000 80,000 100,000 500,000 150,000 850,000 700,000 1. What amount should be reported as cost of goods sold? a. 3,850,000 b. 4,000,000 c. 4,150,000 d. 4,700,000 2. What amount should be reported as total expenses before income tax? a. 2,350,000 b. 2.500,000 c. 2,250,000 d. 2,050,000 3. What amount should be reported as net income for the current year? a. 2,000,000 b. 2,500,000 c. 1,500,000 d. 2,650,000
Problem 4-19 (IAA) Empress Company provided the following data for the current year: Retained earnings, January 1 Dividends declared Sales Dividend income Inventory, January 1 Purchases Salaries Contribution to employees' pension fund Delivery Miscellaneous expense Doubtful accounts expense Depreciation expense Loss on sale of investment Income from discontinued operation, net of tax Income tax expense Inventory on December 31 at cost Net realizable value of inventory 3,000,000 1,000,000 8,400,000 100,000 1,000,000 3,700,000 1,540,000 300,000 200,000 120,000 10,000 80,000 100,000 500,000 150,000 850,000 700,000 1. What amount should be reported as cost of goods sold? a. 3,850,000 b. 4,000,000 c. 4,150,000 d. 4,700,000 2. What amount should be reported as total expenses before income tax? a. 2,350,000 b. 2.500,000 c. 2,250,000 d. 2,050,000 3. What amount should be reported as net income for the current year? a. 2,000,000 b. 2,500,000 c. 1,500,000 d. 2,650,000
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 5PA: Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in...
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