The following information is related to Splish Company for 2020.

Retained earnings balance, January 1, 2020 $1,332,800
Sales Revenue 34,000,000
Cost of goods sold 21,760,000
Interest revenue 95,200
Selling and administrative expenses 6,392,000
Write-off of goodwill 1,115,200
Income taxes for 2020 1,691,840
Gain on the sale of investments 149,600
Loss due to flood damage 530,400
Loss on the disposition of the wholesale division (net of tax) 598,400
Loss on operations of the wholesale division (net of tax) 122,400
Dividends declared on common stock 340,000
Dividends declared on preferred stock 108,800

Splish Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Splish sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

Required:
Prepare a multiple—step income statement.

Answers

Answer 1

Answer:

Net income is $2,034,560.

Explanation:

The multiple-step income statement refers to an income statement that segregates operating revenues and operating expenses of an organisation from its nonoperating revenues, nonoperating expenses, gains, and losses. In addition, gross profit which is net sales revenue minus the cost of goods sold.

The multiple-step income statement is an alternative to the single-step income statement which reports uses just one equation to calculate profits by deducting total revenue from total expenses from segregating them.

The multiple step income statement of Splish Company for 2020 will look as follows:

Splish Company

Income Statement

For the Year Ended December 31, 2020

Particulars                                                     $                         $              

Sales Revenue                                                                 34,000,000

Cost of goods sold                                                          (21,760,000)

Gross profit                                                                       12,240,000

Selling and administrative expenses                              (6,392,000)

Income from operation                                                     5,848,000

Other revenues and gains

Interest revenue                                        95,200

Gain on the sale of investments             149,600  

Total other revenues and gains                                         244,800  

                                                                                           6,092,800

Other expenses and losses

Write-off of goodwill                               (1,115,200)

Loss due to flood damage                     (530,400)  

Total other expenses and losses                                     (1,645,600)

Income from continuing op. b4 tax                                4,447,200

Income taxes                                                                     (1,691,840)  

Income from continuing operation                                 2,755,360

Discontinued operation

Loss on disposal (net of tax)                  (598,400)

Loss on operations (net of tax)              (122,400)  

                                                                                            (720,800)  

Net income                                                                        2,034,560  


Related Questions

From a salesperson's perspective, the characteristics of a good manager: A. vary from manager to manager. B. conflict with the characteristics managers list as being traits of a good manager. C. are a rarity in modern sales organizations. D. include friendship and loyalty E. include flexibility and a team orientation.

Answers

Answer:

E. include flexibility and a team orientation.

Explanation:

Sales management is the process that maintains customers sales by planning, direction and control of the sales process.

It involves motivation, supervising, delegation, and equipping of the sales force.

This is a people oriented career and therefore requires flexibility and a team orientation. So the team is able to adapt to new strategies aimed at improving the sales process.

​"A permanent increase in government purchases has a larger effect than a temporary increase of the same​ amount." Use the​ saving-investment diagram to evaluate this​ statement, focusing on effects on​ consumption, investment, and the real interest rate for a fixed level of output. ​(​Hint: The permanent increase in government purchases implies larger increases in current and future taxes​.)

Answers

Answer:

here

Explanation:

Match each type of adjusting entry with its definition.
Deferred revenue
Accrued expenses
Prepaid expenses
Accrued revenue
Match each of the options above to the items below.
Receive cash in the current period that will be recorded as a revenue in a future period.
Record an expense in the current period that will be paid in cash in a future period.
Record a revenue in the current period that will be collected in cash in a future period.
Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period.

Answers

Answer and Explanation:

The matching is as follows:

1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period

2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future

3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period

4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine

Answers

Answer:

1. $6,100

2. $3,000

3.$41,000

4.7.3%

Explanation:

1. Calculation for What is the annual depreciation expense associated with the new bottling machine

Depreciation expense= 61,000/10

Depreciation expense=$6,100

2. Calculation for What is the annual incremental net operating income provided by the new bottling machine

Reduction in Operating costs 9,000 ($15,000-$6,000)

Less: Depreciation expense $6000

Incremental net operating income $3,000

3. Calculation for What is the amount of the initial investment

Purchase cost $61,000

Less: Salvage value of old machine $20,000

Initial Investment $41,000

4. Calculation for What is the simple rate of return on the new bottling machine

Incremental net operating income 3000

÷ Initial Investment 41000

Simple rate of return 7.3%

(3,000÷41,000)

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,250. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,270; paint to match the other fleet vehicles at a cost of $1,440; registration costs of $2,970, which included $2,750 of sales tax and an annual registration fee of $220; wash and detailing for $121; and an engine tune-up for $327.

Required:
What is Joseâs cost basis for the delivery van?

Answers

Answer:

$30,710

Explanation:

Calculation for Jose cost basis for the delivery van

Van Winning bid $25,250

Add Shipping costs of $1,270

Add Paint to match the other fleet vehicles $1,440

Add Sales tax $2,750

Basis for the delivery van $30,710

($25,250 + $1,270 + $1,440 + $2,750 )

Therefore Jose cost basis for the delivery van was $30,710

Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Actual results Direct labor hours used Machine hours used The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400. How much manufacturing ovehead would be allocated to Job 603 using the departmental overhead rates?
A. $610
B. $330
C. $580
D. $740

Answers

Answer:

uush no entendí jajaja

Explanation:

que lastima

Making a financial transaction based on information not available to other
investors is known as
A. Sarbanes-Oxley
B. fair disclosure
C. insider trading
D. selling or buying short
SUBMIT

Answers

Answer:c.....

Explanation:a p e x

Making a financial transaction based on information not available to other investors is known as insider trading. Thus the correct option is C.

What is a financial transaction?

A financial transaction is an arrangement for the exchange of commodities or services between a buyer and a seller. The financial account keeps systematic track of all financial transactions and summarises them.

Insider trading is the act of workers dealing in the stock or other securities of a publicly traded firm while in possession of substantial, non-public information on the company.

Insider trading is the act of buying or selling a financial instrument based on the knowledge that is not typically available to investors. Sales are transactions in which a buyer exchanges goods and services with a seller in return for cash or credit.

Therefore, option C is appropriate.

Learn more about Insider trading, here:

https://brainly.com/question/14031275

#SPJ2

The following events apply to Montgomery Company for Year 1, its first year of operation: Received cash of $49,000 from the issue of common stock. Performed $68,000 of services on account. Incurred $10,500 of other operating expenses on account. Paid $41,000 cash for salaries expense. Collected $44,500 of accounts receivable. Paid a $5,000 dividend to the stockholders. Performed $11,500 of services for cash. Paid $7,500 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c.

Answers

Answer:

Montgomery Company

a. Journal Entries

Account Title                    Debit       Credit

Cash                              $49,000

Common stock                               $49,000

To record the issue of common stock for cash.

Accounts Receivable     $68,000

Service Revenue                            $68,000

To record the performance of services on account.

Operating Expense        $10,500

Accounts payable                       $10,500

To record operating expenses incurred on account.

Salaries Expense          $41,000

Cash                                            $41,000

To record the payment for salaries expense.

Cash                             $44,500

Accounts Receivable                  $44,500

To record cash collected on account.

Dividends                     $5,000

Cash                                              $5,000

To record the payment of dividend to stockholders.

Cash                           $11,500

Service Revenue                          $11,500

To record the performance of services for cash.

Accounts payable      $7,500

Cash                                                $7,500

To record the payment on account.

b. T-accounts

Cash Account

Account Title                    Debit       Credit

Common stock             $49,000

Salaries expense                          $41,000

Accounts receivable      44,500

Dividends                                         5,000

Service revenue             11,500

Accounts payable                            7,500

Balance                                           51,500

Totals                        $105,000 $105,000

Common Stock

Account Title                    Debit       Credit

Cash                                              $49,000

Accounts Receivable

Account Title                    Debit       Credit

Service Revenue         $68,000

Cash                                               $44,500

Balance                                            23,500

Totals                             68,000     68,000

Service Revenue

Account Title                    Debit       Credit

Accounts receivable                    $68,000

Cash                                                 11,500

Balance                        $79,500

Totals                             79,500    79,500

Accounts Payable

Account Title                    Debit       Credit

Operating Expense                      $10,500

Cash                               $7,500

Balance                            3,000

Totals                           $10,500   $10,500

Operating Expense

Account Title                    Debit       Credit

Accounts payable       $10,500

Salaries Expense

Account Title                    Debit       Credit

Cash                            $41,000

Dividends

Account Title                    Debit       Credit

Cash                             $5,000

c. Trial Balance as of December 31, Year 1:

Account Title                    Debit       Credit

Cash                               $51,500

Common stock                                $49,000

Accounts receivable      23,500

Service revenue                                79,500

Accounts payable                               3,000

Operating expense        10,500

Salaries expense            41,000

Dividends                         5,000

Totals                           $131,500  $131,500

Explanation:

a) Transactions:

Received cash of $49,000 from the issue of common stock.

Performed $68,000 of services on account.

Incurred $10,500 of other operating expenses on account.

Paid $41,000 cash for salaries expense.

Collected $44,500 of accounts receivable.

Paid a $5,000 dividend to the stockholders.

Performed $11,500 of services for cash.

Paid $7,500 of the accounts payable.

b) Journal entries record the transactions for the first time.  General ledger accounts are where the accounts are summarized.  Trial balance shows the list of the account balances extracted from the general ledger.

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