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    TAWHID ARMAN
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    This document contains income statement and related information for Klingon Corporation for the year 2020. It provides the company's revenues, expenses, costs of goods sold, operating expenses, other income and expenses, income taxes, extraordinary items and calculations of net income and earnings per share. The multiple step income statement shows sales revenue of $915,000, costs of goods sold of $587,000, operating expenses of $175,000, other income of $11,000, income taxes of $55,600, extraordinary loss of $33,000 and net income of $75,240. The retain earnings statement shows opening retain earnings of $1,500, net income of $75,240, preferred stock of $1

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    This document contains income statement and related information for Klingon Corporation for the year 2020. It provides the company's revenues, expenses, costs of goods sold, operating expenses, other income and expenses, income taxes, extraordinary items and calculations of net income and earnings per share. The multiple step income statement shows sales revenue of $915,000, costs of goods sold of $587,000, operating expenses of $175,000, other income of $11,000, income taxes of $55,600, extraordinary loss of $33,000 and net income of $75,240. The retain earnings statement shows opening retain earnings of $1,500, net income of $75,240, preferred stock of $1

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    41 views6 pages

    Assignment 2

    Uploaded by

    TAWHID ARMAN
    This document contains income statement and related information for Klingon Corporation for the year 2020. It provides the company's revenues, expenses, costs of goods sold, operating expenses, other income and expenses, income taxes, extraordinary items and calculations of net income and earnings per share. The multiple step income statement shows sales revenue of $915,000, costs of goods sold of $587,000, operating expenses of $175,000, other income of $11,000, income taxes of $55,600, extraordinary loss of $33,000 and net income of $75,240. The retain earnings statement shows opening retain earnings of $1,500, net income of $75,240, preferred stock of $1

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    of 6

    Assignment On

    --Income Statement and Related Information --


    Course Code: __ACT 202_
    Course Title: _Intermediate Financial Accounting_

    Submitted To
    Fahmida Emran Mumu
    Lecturer (Senior Scale)----
    Department of _Business Administration__
    Daffodil International University

    Submitted By
    ----Kayes Arman---
    ID:192-11-6265
    Department of __ Business Administration __

    Daffodil International University


    Date of Submission _7/28/2020
    Presented below is income statement related information to Klingon Corporation for the year-2020.

    Officers’ salaries 39,000 Transportation -In 14,000


    Depreciation Expense -Building 28,500 Purchase discount 10,000
    Opening retain earning 1,500 Inventory (beginning) 120,000
    Inventory(ending) 137,000 Sales return and allowance 15,000
    Flood damage 50,000 Sales salaries 71,000
    Purchase 600,000 Depreciation expenses-Store 18,000
    Sales 930,000 Store supplies 9,000
    Office supplies expenses 9,500 Preferred Dividend paid 1,000
    In addition, the corporation has other revenue from dividends received of Tk.20,000 and other
    expenses of interest on notes payable of Tk.9,000. There are 20,000 share of common stock
    outstanding for the year. The total effective tax rate on all income is 34%.

    Required:

    (a) Prepare a multiple-step income statement for 2020.


    (b) Prepare a retain earning statement for 2020.
    (c) Also calculate earnings per share for 2020.

    Page 2 of 6
    Klingon Corporation
    Multiple income statement
    For the year ended December 31, 2020

    Particulars TK TK TK
    Sales revenue 930,000
    Less: Sales return and allowance (15,000)
    Net sales revenue 915000
    Cost of goods sold:
    Begging inventory 120000
    Purchase 600,000
    Transportation -In 14,000
    Purchase discount (10,000)
    Net purchase 604000
    Ending inventory (137000)
    Total cost of goods sold (587000)
    Gross profit 328000
    Less: operating expenses
    Selling Expenses:
    Store supplies 9,000
    Sales salaries 71,000
    Depreciation expenses-Store 18,000
    Total selling expenses 98000
    Administrative expenses:
    Officers’ salaries 39,000
    Depreciation Expense -Building 28,500
    Office supplies expenses 9,500
    Total administrative expenses 77000
    Total operating expenses (175000)
    Income from operations 153000
    Add: Other revenue & gains
    Dividend revenue 20,000
    Less: Other expenses & losses
    Interest on notes payable 9000 11000
    Income before tax 164000
    Income tax (34%) (557600
    Income after tax 108240
    -Extraordinary items:
    Flood damage (50000)
    Income tax on flood damage (17000) (33000)
    Net income 75240

    Page 3 of 6
    (B)

    Klingon Corporation
    a retain earning statement
    For the year ended December 31, 2020

    Opening retain earning 1500


    Add: Net income 75240
    Less: Preferred stock 1000

    Retain earning on December 31 75740

    (C)

    Net income – Preferred dividend


    Earning Per Share (EPS) =
    No. of common share outstanding

    75240-1000
    =
    20000

    = 3.721

    Page 4 of 6
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