accounting homework
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acct_3311.xlsxVersion A
| ACCT 3311 Exam 2 Take-Home Income Statement | ||||||
| The following is a partial list of the account balances, after adjustments, of World Inc. on December 31, 2013: | ||||||
| Depreciation Expense: Buildings and Office Equipment | $ 10,875.00 | $ 10,875.00 | ||||
| Sales Commissions and Salaries | $ 13,650.00 | $ 13,650.00 | ||||
| Inventory, January 1, 2013 | $ 28,350.00 | $ 28,350.00 | ||||
| Sales Supplies Used | $ 4,200.00 | $ 4,200.00 | ||||
| Retained Earnings, January 1, 2013 | $ 62,775.00 | $ 62,775.00 | ||||
| Purchase Returns and Allowances | $ 4,650.00 | $ 4,650.00 | ||||
| Bad Debt Expense | $ 2,025.00 | $ 2,025.00 | ||||
| Transportation-In | $ 10,125.00 | $ 10,125.00 | ||||
| Sales Discounts Taken | $ 3,675.00 | $ 3,675.00 | ||||
| Purchases | $ 129,750.00 | $ 129,750.00 | ||||
| Delivery Expense | $ 5,775.00 | $ 5,775.00 | ||||
| Office Supplies Expense | $ 1,050.00 | $ 1,050.00 | ||||
| Common Stock, $10 par | $ 60,000.00 | $ 60,000.00 | ||||
| Loss on Sale of Office Equipment (pretax) | $ 3,750.00 | $ 3,750.00 | ||||
| Insurance and Property Tax Expense | $ 6,375.00 | $ 6,375.00 | ||||
| Sales | $ 255,525.00 | $ 255,525.00 | ||||
| Rent Revenue | $ 5,175.00 | $ 5,175.00 | ||||
| Office and Administrative Salaries Expense | $ 24,000.00 | $ 24,000.00 | ||||
| Promotion and Advertising Expense | $ 12,750.00 | $ 12,750.00 | ||||
| Sales Returns and Allowances | $ 9,075.00 | $ 9,075.00 | ||||
| Purchase Discounts Taken | $ 3,075.00 | $ 3,075.00 | ||||
| Depreciation Expense: Sales Equipment | $ 7,200.00 | $ 7,200.00 | ||||
| Interest Expense | $ 2,775.00 | $ 2,775.00 | ||||
| The following information is also available: | ||||||
| 1. The company declared and paid a cash dividend on its common stock of | $0.45 | per share | $0.45 | |||
| The stock was outstanding the entire year. | ||||||
| 2. A physical count determined that the December 31, 2013, ending inventory is | $25,575.00 | $25,575.00 | ||||
| 3. A tornado destroyed a warehouse, resulting in a pretax loss of | $9,000.00 | $9,000.00 | ||||
| 4. On May 1, 2013, the company sold an unprofitable division (M). | ||||||
| From January through April, Division M had incurred a pretax operating loss of | $6,525.00 | $6,525.00 | ||||
| Division M was sold at a pretax gain of | $7,500.00 | $7,500.00 | ||||
| 5. The company is subject to an income tax rate of | 30% | 23% | ||||
Required: A. Prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. B. Prepare a 2013 multiple-step income statement for World Inc. including Components of Earnings Per Share (EPS) presentation. C. Prepare a 2013 retained earnings statement.
