Intermediate Accounting Week 2 Hw

Homework Assignment 2
March 6, 2012

Exercise 4-8
(a)
BROKAW CORP.
Income Statement
For the Year stop declination 31, 2012
____________________________________________________________

___________

Sales Revenue
Net Sales ………...………………………………………………………$1,200,000
Cost of Goods change……………………………………………………………..780,000
Gross Profit …………………………………………………………………420,000

Operating Expenses
Selling Expenses……………………………………...65,000
Administrative Expenses……………………………..48,000 113,000
Income from trading operations ……………………………………………………….307,000

Other Revenues and Gains
Dividend Revenue ……………………………………20,000
Interest Revenue………………………………………..7,000 27,000
334,000
Other Expenses and Losses
admit of Inventory due to Obsolescence………………………………....80,000
Income from Continuing Operations before Income revenue enhancement ……………………..254,000
Income valuate ………….………….……………………………………………… 86,360
Income from Continuing Operations …………………………………………. 167,640

Extraordinary Item injured party Loss …………………….50,000
Less: Applicable Income Tax………………………...



17,000 33,000
Net Income……………………………………………………………………. 134,640

Per role of Common Stock
Income from Continuing Operations ($167,640/60,000) ……………………...2.79
Extraordinary Loss, Net of Tax…………………………………………...……0.55
Net Income ($134,640/60,000) ……………………………………………….. 2.24

(b)
BROKAW CORP.
maintained Earnings Statement
For the Year Ended December 31, 2012
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____________

Retained Earnings, Jan 1, as reported ………………………………………...$980,000
Correction for Overstatement of depreciation Expense in
Prior Period depreciation error (net of tax)…………………….……………. 26,400
Retained Earnings, January 1, as Adjusted……………………………………..953,600
Add: Net Income………………………………………………………………..134,640...If you want to cast a full essay, order it on our website: Orderessay



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