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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 30
Reporting Unusual Events: A Comprehensive Problem
The income statement below was prepared by a new and inexperienced employee in the accounting department of Phoenix, Inc., a business organized as a corporation.
Instructions
a. Prepare a corrected income statement for the year ended December 31, 2015, using the format illustrated in Exhibit 12-2. Include at the bottom of your income statement all appropriate earnings-per-share figures. Assume that throughout the year the company had outstanding a weighted average of 180,000 shares of a single class of capital stock.
b. Prepare a statement of retained earnings for 2015. (As originally reported, retained earnings at December 31, 2014, amounted to $2,175,000.)
c. What does the $62,000 "gain on sale of treasury stock" represent? How would you report this item in Phoenix's financial statements at December 31, 2015?
EXHIBIT 12-2 Earnings Per Share Presentation
The income statement below was prepared by a new and inexperienced employee in the accounting department of Phoenix, Inc., a business organized as a corporation.
Instructions
a. Prepare a corrected income statement for the year ended December 31, 2015, using the format illustrated in Exhibit 12-2. Include at the bottom of your income statement all appropriate earnings-per-share figures. Assume that throughout the year the company had outstanding a weighted average of 180,000 shares of a single class of capital stock.
b. Prepare a statement of retained earnings for 2015. (As originally reported, retained earnings at December 31, 2014, amounted to $2,175,000.)
c. What does the $62,000 "gain on sale of treasury stock" represent? How would you report this item in Phoenix's financial statements at December 31, 2015?
EXHIBIT 12-2 Earnings Per Share Presentation
Explanation
Verified
Verified
Income statement shows the expense, whic...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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