Reference no: EM132626350

Questions -

Q1. Blue Corporation had income from continuing operations of $10,801,100 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $199,400. Prior to disposal, the division operated at a loss of $319,400 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Blue had 10,000,000 shares of common stock outstanding during 2020. Make a partial income statement for Blue beginning with income from continuing operations.

Q2. In 2020, Sheffield Corporation reported net income of $1,141,200. It declared and paid preferred stock dividends of $263,900. During 2020, Sheffield had a weighted average of 194,300 common shares outstanding. Compute Sheffield's 2020 earnings per share.

Q3. Nash Corporation has retained earnings of $722,500 at January 1, 2020. Net income during 2020 was $1,513,900, and cash dividends declared and paid during 2020 totaled $81,200. Prepare a retained earnings statement for the year ended December 31, 2020. (List items that increase retained earnings first.)

Q4. Presented below is information related to Blossom Company at December 31, 2020, the end of its first year of operations.

Sales revenue $322,170

Cost of goods sold 138,320

Selling and administrative expenses 51,700

Gain on sale of plant assets 30,260

Unrealized gain on available-for-sale debt investments 9,200

Interest expense 5,820

Loss on discontinued operations 12,220

Dividends declared and paid 4,580

Compute the following:

(a) Income from operations

(b) Net income

(c) Comprehensive income

(d) Retained earnings balance at December 31, 2020