The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $124,000 Operating expenses Interest expense 4,600 Common stock, $5 par Cost of goods sold 57,000 Retained earnings, 1/1/2019 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.74 per share was declared and paid. 2. Land was sold at a pretax gain of $6,700. 3. Division X (a major component of the company) was sold at a pretax gain of $4,640. It had incurred a $9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $89,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places. HUFF COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Gales (net) Cost of goods sold Operating income Other items Gain on sale of land $27,200 22,000 41,400 Encome tax expense 00000000 000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Income Statement and Retained Earnings
The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance:
Sales (net)
$124,000 Operating expenses
Interest expense
4,600 Common stock, $5 par
Cost of goods sold
57,000 Retained earnings, 1/1/2019
The following information is also available for 2019 and is not reflected in the preceding accounts:
1. The common stock has been outstanding all year. A cash dividend of $1.74 per share was declared and paid.
2. Land was sold at a pretax gain of $6,700.
3. Division X (a major component of the company) was sold at a pretax gain of $4,640. It had incurred a $9,500 pretax operating loss during 2019.
4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss.
5. The income tax rate on all items of income is 30%.
6. The average shareholders' equity is $89,000.
Required:
1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places.
HUFF COMPANY
Gales (net)
Cost of goods sold
Gross profit
Operating expenses
Operating income
Other items
Gain on sale of land
Interest expense
$27,200
22,000
41.400
Income tax expense
Income Statement (Multi-Step)
For Year Ended December 31, 2019
000
00000 0000
R
Transcribed Image Text:Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $124,000 Operating expenses Interest expense 4,600 Common stock, $5 par Cost of goods sold 57,000 Retained earnings, 1/1/2019 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.74 per share was declared and paid. 2. Land was sold at a pretax gain of $6,700. 3. Division X (a major component of the company) was sold at a pretax gain of $4,640. It had incurred a $9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $89,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. Round earnings per share computations to two decimal places. HUFF COMPANY Gales (net) Cost of goods sold Gross profit Operating expenses Operating income Other items Gain on sale of land Interest expense $27,200 22,000 41.400 Income tax expense Income Statement (Multi-Step) For Year Ended December 31, 2019 000 00000 0000 R
Gain on sale of land
Interest expense
Income tax expense
Income from continuing operations
Results from discontinued operations
Loss from operations of discontinued division X (net of income tax credit)
Loss caused by tornado
Net loss
Components of Income
Net income
2. Prepare a 2019 retained earnings statement.
HUFF COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained earnings, 1/1/2019
Add: Net income for 2019
Less: Cash dividends
Retained earnings, 12/31/2019
3. Compute the 2019 return on common equity. Round to one decimal place.
%
000 00
0000 00000
Earnings per Common Share
$
Transcribed Image Text:Gain on sale of land Interest expense Income tax expense Income from continuing operations Results from discontinued operations Loss from operations of discontinued division X (net of income tax credit) Loss caused by tornado Net loss Components of Income Net income 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, 1/1/2019 Add: Net income for 2019 Less: Cash dividends Retained earnings, 12/31/2019 3. Compute the 2019 return on common equity. Round to one decimal place. % 000 00 0000 00000 Earnings per Common Share $
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