Instructions: Please, work the problem below. You may use excel and any calculator, but the submission has to be handwritten!
This is a graded, individual assignment. Requesting help from anyone other than instructors or the graduate assistants for this class is considered an honor violation. Requesting help from classmates or SLAC personnel is an honor violation. Everything you need to complete this problem set will be addressed in class by the due date of the assignment and is contained in the book.
The following information was taken from the records of Lacey Inc. for the year ended 2018. All items income statement amounts are before tax. The tax rate on all items is 30%.
Loss on discontinued operations 105,000 Retained earnings January 1, 2018 840,000
Common shares of stock outstanding during 2018 were 100,000. In 2018, Lacey changed from using LIFO to Weighted-Average for inventory. The cumulative effect of this change on income, prior to tax, was ($60,000). That is, net income would have been lower under Weighted-Average than LIFO. The applicable tax rate for prior years is 30%. On December 31, 2018, Lacy Inc. declared a $5,000 dividend to common stock shareholders.
Problem set #1
Student’s name_______________________________________
Instructions:
Please,
work the problem below.
You may use excel and any calculator, but
the submission has to be handwritten!
This is a graded, individual assignment. Requesting help from anyone other than
instructors or the graduate assistants for this class is considered an honor violation.
Requ
esting help from classmates or SLAC personnel is an honor violation
. Everything you
need to complete this problem set will be addressed in class by the due date of the
assignment and is contained in the book.
Comprehensive problem
The following information was taken from the records of
Lacey
Inc. for the year
ended
201
8
. All items
income statement amounts are before tax. The tax rate on all items is
30%.
Unusual gain $133,000
Cash dividends declared $ 210,000
Loss on discont
inued operations 105,000
Retained earnings January 1,
201
8
840,000
Administrative expenses 336,000
Cost of goods sold 1,190,000
Rent revenue 56,000
Selling expenses 420,000
Unusual loss 84,000
Sales
2,700
,000
Unrealized holding gain
on available
-
sale
-
securities $21,000
Sales discounts 40,000
Common s
hares
of stock
outstanding during 201
8
were 100,000.
In 201
8
, Lacey changed
from using LIFO to Weighted
-
Average for inventory. The cumulative effect of this change
on income
,
prior to tax
,
was
(
$
6
0,000
)
.
That is, net income would have been lower under
Weighted
-
Average than LIFO. The applicable tax rate for prior years is 30%. On
December 31, 201
8
, Lacy Inc. declared a $5,000 dividend
to common stock shareholders
.
Required:
(a)
Prepare a
multi
-
step income statement
for 2018.
(b)
Prepare a retained earnings statement
(c)
Calculate comprehensive income
Make sure they contain (when applicable) the following items:
§
Net Sales
§
Gross profit
§
Income from operations
§
Income before income tax
§
Income from
continuing operations
§
Net income
§
Retained earnings, 12/31/2018
§
Comprehensive income for 2018
Problem set #1
Student’s name_______________________________________
Instructions: Please, work the problem below. You may use excel and any calculator, but
the submission has to be handwritten!
This is a graded, individual assignment. Requesting help from anyone other than
instructors or the graduate assistants for this class is considered an honor violation.
Requesting help from classmates or SLAC personnel is an honor violation. Everything you
need to complete this problem set will be addressed in class by the due date of the
assignment and is contained in the book.
Comprehensive problem
The following information was taken from the records of Lacey Inc. for the year ended
2018. All items income statement amounts are before tax. The tax rate on all items is
30%.
Unusual gain $133,000 Cash dividends declared $ 210,000
Loss on discontinued operations 105,000 Retained earnings January 1,
2018 840,000
Administrative expenses 336,000 Cost of goods sold 1,190,000
Rent revenue 56,000 Selling expenses 420,000
Unusual loss 84,000 Sales 2,700,000
Unrealized holding gain on available-sale-securities $21,000
Sales discounts 40,000
Common shares of stock outstanding during 2018 were 100,000. In 2018, Lacey changed
from using LIFO to Weighted-Average for inventory. The cumulative effect of this change
on income, prior to tax, was ($60,000). That is, net income would have been lower under
Weighted-Average than LIFO. The applicable tax rate for prior years is 30%. On
December 31, 2018, Lacy Inc. declared a $5,000 dividend to common stock shareholders.
Required:
(a) Prepare a multi-step income statement for 2018.
(b) Prepare a retained earnings statement
(c) Calculate comprehensive income
Make sure they contain (when applicable) the following items:
Net Sales
Gross profit
Income from operations
Income before income tax
Income from continuing operations
Net income
Retained earnings, 12/31/2018
Comprehensive income for 2018