The following items were taken from the adjusted trial balance of the Bremeur Corp, on 31 December 20X5. Assume an average 20% income tax on all items (including the divestiture loss). The accounting period ends 31 December. All amounts given are pre-tax and subject to the same income tax rate. Bremeur had 24,000 shares outstanding at the beginning of the year. On 31 August 20x5, an additional 9,000 shares were issued; at the end of 20X5, 33,000 shares were outstanding. Sales revenue from continuing operations Revenue in business segment being discontinued Rent revenue Interest revenue Gain on sale of investments Distribution expenses General and administrative expenses Operating expenses in business segment being discontinued Interest expense Depreciation and amortization Settlement of legal clain against the company Asset impairments, discontinued operation Cost of goods sold $732,700 90,000 3,900 1,650 3,500 BREMEUR CORPORATION Income Statement For Year Ended 31 December 20X5 (in Canadian dollars) 151,000 125,000 85,500 3,000 7,500 11,500 13,500 345,000 Required: 1. Prepare a single-step income statement. (Round "Earnings per share" answers to 2 decimal places. Loss amounts should be indicated by a minus sign.)

The following items were taken from the adjusted trial balance of the Bremeur Corp, on 31 December 20X5. Assume an average 20% income tax on all items (including the divestiture loss). The accounting period ends 31 December. All amounts given are pre-tax and subject to the same income tax rate. Bremeur had 24,000 shares outstanding at the beginning of the year. On 31 August 20x5, an additional 9,000 shares were issued; at the end of 20X5, 33,000 shares were outstanding. Sales revenue from continuing operations Revenue in business segment being discontinued Rent revenue Interest revenue Gain on sale of investments Distribution expenses General and administrative expenses Operating expenses in business segment being discontinued Interest expense Depreciation and amortization Settlement of legal clain against the company Asset impairments, discontinued operation Cost of goods sold $732,700 90,000 3,900 1,650 3,500 BREMEUR CORPORATION Income Statement For Year Ended 31 December 20X5 (in Canadian dollars) 151,000 125,000 85,500 3,000 7,500 11,500 13,500 345,000 Required: 1. Prepare a single-step income statement. (Round "Earnings per share" answers to 2 decimal places. Loss amounts should be indicated by a minus sign.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

See similar textbooks

Similar questions

The following items were taken from the adjusted trial balance of the Dylex Corporation for the year ended December 31, 2020. Assume an average 25% income tax on all ens. The accounting period ends December 31, and all amounts given are pre-tax. Dylex Corporation had 11,000 common shares outstanding in 2020 and follows IFRS Cost of goods sold Depreciation expense, building Gain on exchange Gain on sale of assets from discontinued operations Insurance expense Interest expense Interest income Loss on sale of trading investment 140,000 23,000 a) Prepare a multi-step income statement in good form. Please make sure your final anewarts) are accurate to 2 decimal places Dylex Corporation For the Year Ended December 31, 200 125,000 100,000 54,000 52,000 X 58,000 135,000 Operating loss of discontinued operation to disposal date 100,000 Salaries expense 160.000 Sales ** 900,000 REQUIRED DISCLOSURES b) Calculate basic eamings per share (EPS) from continuing operations. Please make sure your final…
Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid M 337,850 £ 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083
Lone Star Company is a calendar-year corporation, and this year Lone Star reported $142,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,040. Lone Star declared $42,600 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st June 1st for $56,800. How much dividend income will Matt recognize this year? Hint: The correct answer is from the book = 100,820
On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax…
The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500.000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accounts pertaining to this customer of P100,000. C. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the Russian army which accidentally hit the vessel on March 5, 2022. d. A factory machinery with carrying amount…
On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax…
Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing operation, $8400 income from operations of discontinued Line C, and $12500 loss on disposal of Line C. Starting with income from continuing operations, prepare a partical income statement for Niler for the current year. Ignore earnings per share.
Assume the following independent cases: (a) At the beginning of the year, a check was issued for P400,000 as payment for a piece of land and the buyer assumed the liability for unpaid taxes in arrears for the previous year, P10,000 and those assessed for the current year, P9,000.(b) A company issued 14,000 ordinary shares (P50 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and professional appraisers.(c) A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).How much is the cost of land acquired in (a), (b), and (c), respectively? a. 419,000; 800,000; 7,800,000 b. 410,000; 800,000; 7,800,000 c. 410,000; 840,000; 7,800,000 d. 419,000; 840,000;…
Can you please help me find what amount should be reported as income before tax in the financial statements? 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500,000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accountsp ertaining to this customer of P100,000. c. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the…
Agassi Corporation is preparing the comparative financial statements to be included in the annual report to shareholders. Agassi employs a fiscal year ending May 31. Income before income tax for Agassi was P1,400,000 and P660,000 respectively for fiscal year ended May 31, 2019 and 2018. Agassi experienced a loss from discontinued operations of P400,000 in March2018. A 40% combined income tax rate pertains to any and all of Agassi Corporation’s profits, gains, and losses. Agassi’s capital structure consists of preference shares and ordinary shares. The company has not issued any convertible securities or warrants and there are no outstanding share options. Agassi issued 40,000 shares of P100 par value, 6% cumulative preference shares in 2018. All of these shares are outstanding, and no preference dividends are in arrears. There were 1,000,000 shares of P1 par ordinary shares outstanding on June 1, 2017. On September 1, 2017, Agassi sold an additional 400,000 ordinary shares at P17 per…
Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…
Q Corporation, an S corporation, is solely owned by V. V’s stock basis at the beginning of the year is $8,000. Q has the following beginning-of-year account balances: Accumulated Adjustments Account (AAA) $10,000 Accumulated Earnings and Profits (AE&P) 15,000 Other Adjustments Account (OAA) 6,000 For the year, Q Corporation reported net ordinary income of $12,000 and tax-exempt income of $7,000. It also made a cash distribution to V at year-end of $30,000. Calculate the corporation's AAA and AE&P at year-end. SHOW WORK FOR PARTIAL CREDIT.