Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158809
Author: Wild, John
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 1, Problem 15E
Summary Introduction
Concept introduction:
Income statement is prepared to know the profitability of the business. Income statement shows the revenue generated, expenses incurred and net income earned by the business during a particular period.
To prepare: The income statement for the month of October.
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Goldfinger Corporation had account balances at the end of the currentyear as follows: sales revenue, $29,000; cost of goods sold, $12,000;operating expenses, $6,200; and income tax expense, $4,320. Assumeshareholders owned 4,000 shares of Gold finger's common stock duringthe year. Prepare Goldfinger's income statement for the current year.
Goldfinger Corporation had account balances at the end of the current year as follows:
sales revenue, $29,000; cost of goods sold, $12,000; operating expenses, $6,200; and
income tax expense, $4,320. Assume shareholders owned 4,000 shares of Goldfinger's
common stock during the year. Prepare Goldfinger's income statement for the current year.
A list of Year 3 revenues and expenses for Green Thumb, Incorporated is provided below.
Advertising and Promotion Expenses
$ 264,300
Income Tax Expense
56,680
Interest Expense
44,080
Other Expenses
124,200
Other Selling & Administrative Expenses
352,600
Sales Revenue
1,874,300
Salaries and Wages Expense
726,600
Required:
a. Calculate the net income for Green Thumb, Incorporated for Year 3.
b. Prepare a statement of retained earnings for Green Thumb, Incorporated for Year 3. Assume the company had retained earning
$163,800 as of January 1, Year 3, and paid out $46,180 in dividends during Year 3.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare a statement of retained earnings for Green Thumb, Incorporated for Year 3. Assume the company had retained
earnings of $163,800 as of January 1, Year 3, and paid out $46,180 in dividends during Year 3.
GREEN THUMB, INCORPORATED
Statement of Retained Earnings
For the Year Ended December 31, Year 3
$…
Chapter 1 Solutions
Financial Accounting: Information for Decisions
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