The following balances were taken from the books of Sheridan Corp. on December 31, 2020. $87,300 52,300 1,381,300 Accumulated depreciation-equipment Accumulated depreciation-buildings 151,300 21,300 151,300 8,300 46,300 101,300 201,300 141,300 622,300 Interest revenue Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings Cost of goods sold Notes receivable Selling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage Common stock Retained earnings $41,300 29,300 156,300 195,300 171,300 101,300 98,300 33,300 61,300 101,300 151,300 501,300 22,300 Assume the total effective tax rate on all items is 20%. Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round ex share to 2 decimal places, e.g. 1.48.)
The following balances were taken from the books of Sheridan Corp. on December 31, 2020. $87,300 52,300 1,381,300 Accumulated depreciation-equipment Accumulated depreciation-buildings 151,300 21,300 151,300 8,300 46,300 101,300 201,300 141,300 622,300 Interest revenue Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Buildings Cost of goods sold Notes receivable Selling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage Common stock Retained earnings $41,300 29,300 156,300 195,300 171,300 101,300 98,300 33,300 61,300 101,300 151,300 501,300 22,300 Assume the total effective tax rate on all items is 20%. Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round ex share to 2 decimal places, e.g. 1.48.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:The following balances were taken from the books of Sheridan Corp. on December 31, 2020.
Accumulated depreciation-equipment
Accumulated depreciation-buildings
Interest revenue
Cash
Sales revenue
Accounts receivable
Prepaid insurance
Sales returns and allowances
Allowance for doubtful accounts
Sales discounts
Land
Equipment
Buildings
Cost of goods sold
$87,300
52,300
1,381,300
151,300
21,300
151,300
8,300
46,300
101,300
201,300
141,300
622,300
Notes receivable
Selling expenses
Accounts payable
Bonds payable
Administrative and general expenses
Accrued liabilities
Interest expense
Notes payable
Loss from earthquake damage
Common stock
Retained earnings
$41,300
29,300
156,300
195,300
171,300
101,300
98,300
33,300
61,300
101,300
151,300
501,300
22,300
Assume the total effective tax rate on all items is 20%.
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earr
share to 2 decimal places, e.g. 1.48.)
Transcribed Image Text:Sales
Sales Revenue
Less :
Sales Discounts
Sales Returns and Allowances
Net Sales
Cost of Goods Sold
Gross Profit/(Loss)
Operating Expenses
Selling Expenses
Administrative Expenses
Total Expenses
Net Sales
Cost of Goods Sold
Gross Profit/(Loss)
Operating Expenses
Selling Expenses
Administrative Expenses
Total Expenses
Per share of common stock:
SHERIDAN CORP.
Income Statement
December 31, 2020
4
$
IN
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