Income Statement and Retained Earnings
E5-10      Income Statement and Retained Earnings The Cobler Company uses a periodic inventory system and presents the following partial list of account balances taken from its December 31, 2007 adjusted trial balance:
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Operating expenses
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$ 35,800
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Common stock, $15 par
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$45,000
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Dividend revenue
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1,000
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Merchandise inventory, January 1, 2007
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24,000
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Retained earnings, January 1, 2007
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68,700
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Purchases (net)
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79,200
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Sales (net)
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139,600
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The following information is also available for 2007 and is not reflected in the preceding accounts:
1.     The common stock has been outstanding for the entire year. A cash dividend of $0.84 per share was declared and paid.
2.     The income tax rate on all items of income is 30%.
3.     The ending merchandise inventory is $27,300.
4.     A pretax $4,000 loss was recognized on the sale of Division X (a component of the company). This division had  earned a pretax operating income of $1,900 during 2007.
5.     Damaged inventory was written off at a pretax loss of $6,600.
6.     An earthquake, which is an unusual and infrequent event in the area, caused a $3,700 pretax loss.
equired
1.     Prepare a cost of goods sold schedule for Cobler Company.
2.     Prepare a 2007 single-step income statement.
3.     Prepare a 2007 retained earnings statement.
4.     Compute the 2007 profit margin (net income --- net sales).
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Answers
Status NEW
Posted 15 Jun 2017 09:06 AM
My Price 7.00
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file 1497519451-1311707_1_636330837951828864_Income-statement-and-Retained-Earnings.xlsx preview (305 words )
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