Solution manual intermediate accounting 15th kiesoch04

Income Statement For Year Ended December 31, 2014 Sales..... SAGHIR COMPANY Income Statement For the Year Ended December 31, 2014 In thousands, except earnings per share... SAGHIR COMPAN

LEON PAUL INC.

Income Statement For Year Ended December 31, 2014 Sales $2,500,000 Less:  Sales discounts        34,000

 Net sales   2,466,000 Expenses

= 4 X $200,000

= $800,000 Per share $14.91 ($298,200 ÷ 20,000)

SAGHIR COMPANY Income Statement For the Year Ended December 31, 2014 (In thousands, except earnings per share)

SAGHIR COMPANY Income Statement For the Year Ended December 31, 2014 (In thousands, except earnings per share) Revenues

2 Expenses are matched with related revenue.

opinion. However, the discussion supporting the answer should include the above points.

SCHIMANK CORP.

Income Statement For the Year Ended December 31, 2014 Sales Revenue

      Sales $1,932,000        Less:  Sales returns and allowances $210,000 

Income before extraordinary item 

TABEL SHOE CO.

Income Statement For the Year Ended December 31, 2014

TABEL SHOE CO.

Income Statement For the Year Ended December 31, 2014 Revenues

2 Expenses are matched with related revenue.

opinion. However, the discussion supporting the answer should include the above points.

(a) Net sales $1,350,000 Less:  Cost of goods sold (525,000)

Income Statement For the Year Ended December 31, 2014 Sales Revenue

Other Revenues and Gains

Dividend revenue 40,000 Interest revenue     14,000        54,000

868,000 Other Expenses and Losses

Retained Earnings Statement For the Year Ended December 31, 2014 Balance, Jan. 1, as reported $1,960,000 Correction for overstatement of net income in prior period

(depreciation error) (net of $37,400 tax)       (72,600) Balance, Jan. 1, as adjusted 1,887,400 Add: Net income      401,280

2,288,680 Less:  Dividends declared        90,000 Balance, Dec. 31 $2,198,680

(net of $56,000 tax)      (84,000) Correction for depreciation error 

(b) Total retained earnings would still be reported as $932,000. A restriction does not affect total retained earnings; it merely labels part of the retained earnings as being unavailable for dividend distribution. Retained earnings would be reported as follows:

Retained earnings:

Appropriated $280,000 Unappropriated   652,000 Total $932,000 E4­13B (15–20 minutes)

(a)

ARI CORPORATION Income Statement and Statement of Comprehensive Income

For the Year Ended December 31, 2014 Sales $6,000,000  Cost of goods sold   3,750,000 Gross profit 2,250,000

Net income $   650,000  Net income $650,000 

(b)

ARI CORPORATION Income Statement  For the Year Ended December 31, 2014 Sales $6,000,000  Cost of goods sold   3,750,000 Gross profit 2,250,000

Net income $   650,000 

ARI CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2014 Net income $650,000 

Total

Compr e­

hensive Income

Retaine d Earning s

Accumulated Other Comprehensiv

e Income

Common Stock

0

$ 45,000

) )

0

$100,00 0

$10,000 $175,000

*($350,000 – $250,000 – $40,000)

Income Statement For the Year Ended December 31, 2014 Revenues

Statement of Comprehensive Income For the Year Ended December 31, 2014