(Multiple-Step and Extraordinary Items) The following balances were taken from the books of Parnevik Corp. on December 31, 2012.
Sales returns and allowances
Allowance for doubtful accounts
Loss from earthquake damage
Cost of goods sold
Assume the total effective tax rate on all items is 34%.
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
contributed on Jul 30, 2014 08:33 AM
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Effective tax rate of 34% on all items Instructions (a) Prepare a multiple-step income statement for 2012. Assume that 60,000 shares of common stock are outstanding
. Assume that the only changes in retained earnings during the current year were from net income and dividends. Thirty thousand shares of common stock were outstanding the entire year.
a. Prepare a multiple-step income statement. b. Assuming that 100,000 shares of common stock are outstanding, calculate the earnings per share before extraordinary items and the net
The following balances were taken from the books of Parnevik Corp. on December 31, 2012. Assume the total effective tax rate on all items is 34%.
Prepare a multiple-step
outstanding during the year. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a single-step income statement. (c) Which format do you prefer? Discuss.
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