Problem:
Peter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information:
The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000. Be sure to compute EPS where appropriate.
Required:
Question: Prepare a multi step income statement.
Note: Please provide through step by step calculations.
Sales revenue |
1,200,000 |
earthquake loss (extraordinary item) |
56,000 |
selling expense |
128,000 |
cash |
60,000 |
accounts receivable |
90,000 |
common stock |
200,000 |
cost of goods sold |
701,000 |
accumulated depreciation - machinery |
180,000 |
dividend revenue |
8,000 |
unearned service revenue |
4,400 |
interest payable |
1,000 |
land |
370,000 |
patents |
100,000 |
retained earnings Jan 1 2014 |
290,000 |
interest expense |
17,000 |
administrative expense |
170,000 |
dividends declared |
24,000 |
allowance for doubtful accounts |
5,000 |
notes payable (maturity date July 1 2017) |
200,000 |
machinery |
450,000 |
materials |
40,000 |
accounts payable |
60,000 |