+1-415-670-9189
info@expertsmind.com
Prepare a 2004 multiple step income statement for green
Course:- Accounting Basics
Reference No.:- EM13601511




Assignment Help
Assignment Help >> Accounting Basics

On its 200 4financial accounting income statement, the green corp reported " net operating income of 900000. Additional information considered not considered in the 900000 is shown below
a) the company reviewed it Dec 31 2004 account receivable balance and determined that 26000 of these receivables would never be collected. Theses receivables were written off.
b) In late 2004 green reclassified machinery from property plant equipment to long term investment recording a 20000 loss on impairment of machinery removed from use . This loss is tax deductible at 25% tax rate
c) in 2004 the sum of 100000 was received as part of lawsuit settlement . No receivable had been previously created for this lawsuit
d) in 200 , green won 80000 in lottery . The lottery ticket was acquired with petty cash fund, this gain which is taxes at normal rates is considered extraordinary.
e) During 2004 , the company sold some temporary investment at a 150000 loss . This loss was taxes 15%
f) in 2004 , an internal audit determined that amortization of intangibles has been misrecorded . Intangible amortization was understated by 60000 in 2002 and 2003 when tax rate was 30% and by 30000 in the current period. a correction was made in 2004
g) in early 2004 green sold land held for resale at 80000 gain
h) the company discontinued one of its operation in 2004 at loss of 200000 before taxes . This 200000 was taxes at normal rates and consists of 120000operation loss and 80000 losses from the disposal.
i) The company had 75000 loss in 2004 from restructuring charges. This loss was a result of incurring cost to restructure the organizations of the company in order to increase efficiencies. Because of current tax laws green is not able to deduct these cost for taxes purposes.

Green 's 2004 effective taxes rate on normal earning is 35%

Prepare a 2004 multiple step income statement for green beginning with " net operating income" . But omitting any earning per share information.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Investigate information about the role of the Australian Securities Exchange in society. Investigate the procedure that are required under Corporations Act 2001 to establish a
Kerry Company has 1,000 shares of $100 par value, 9% preferred stock and 10,000 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonpa
Last year, Twins Company reported $750,000 in sales (25,000 units) and a net operating income of $25,000. At the break-even point, the company's total contribution margin eq
Utilizing the high-low method of estimating fixed and variable components of cost, the variable portion is divided by the difference in activity/consumption between the high
A corporation receives a $50,000 life insurance settlement when its vice-president dies. At that time, the cash surrender value is $3,000. What journal entry should be made?
The cost of supplies purchased by the Miali company was $4500 during the year. Miali Used $3500 worth of those supplies during the year and still had $1000 worth of them le
In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales. Prepare the entries to record the sales transactions and
Finch Corp. sells portable air filtration systems by means of internet and direct mail orders. Most of the components are purchased from foreign suppliers at a cost of $1,60