income statement and statement of retained earnings
Benford Company uses a periodic inventory system and presents the following items derived from its December 31, 2016, adjusted trial balance:
|
Operating Expenses Save your time - order a paper!Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines Order Paper Now |
$39,380 |
|
Dividend Revenue |
1,100 |
|
Retained Earnings, January 1, 2016 |
75,570 |
|
Sales (net) |
153,560 |
|
Common Stock, $15 par |
49,500 |
|
Merchandise Inventory, January 1, 2016 |
26,400 |
|
Purchases (net) |
87,120 |
The following information is also available for 2016 and is not reflected in the preceding accounts:
- The common stock has been outstanding for the entire year. A cash dividend of $0.92 per share was declared.
- The income tax rate on all items of income is 30%.
- The ending merchandise inventory is $30,030.
- A pretax $4,400 loss was recognized on the sale of Division E (a component of the company). This division had earned a pretax operating income of $2,090 during 2016.
- Damaged inventory was written off at a pretax loss of $7,260.
- An earthquake, which is unusual in the area, caused a $4,070 pretax loss.
Required:
- Prepare a 2016 single-step income statement for Benford Company.
- Prepare a 2016 retained earnings statement for Benford Company.
Looking for a similar assignment? Our writers will offer you original work free from plagiarism. We follow the assignment instructions to the letter and always deliver on time. Be assured of a quality paper that will raise your grade. Order now and Get a 15% Discount! Use Coupon Code "Newclient"
