ACC211 Week 2: Case Study

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ACC211 Chapter 4 Click Link Below To Buy: Brief Exercise 4-5 Your answer is correct. Stacy Corporation had income before income taxes for 2014 of $6,325,000. In addition, it suffered an unusual and infrequent pretax loss of $787,700 from a volcano eruption. The corporation’s tax rate is 30%. Prepare a partial income statement for Stacy beginning with income before income taxes. The corporation had 4,954,000 shares of common stock outstanding during 2014. Brief Exercise 4-7 Your answer is correct. Vandross Company has recorded bad debt expense in the past at a rate of 1.5% of net sales. In 2014, Vandross decides to increase its estimate to 2%. If the new rate had been used in…show more content…
In 2014, Hollis Corporation reported net income of $1,077,000. It declared and paid preferred stock dividends of $269,000. During 2014, Hollis had a weighted average of 199,100 common shares outstanding. Compute Hollis’s 2014 earnings per share. Brief Exercise 4-10 Your answer is correct. Portman Corporation has retained earnings of $720,100 at January 1, 2014. Net income during 2014 was $1,651,000, and cash dividends declared and paid during 2014 totaled $82,800. Prepare a retained earnings statement for the year ended December 31, 2014. Assume an error was discovered: land costing $87,010 (net of tax) was charged to maintenance and repairs expense in 2011. Exercise 4-3 Your answer is correct. Presented below are certain account balances of Paczki Products Co. Rent revenue $7,030 Sales discounts $8,130 Interest expense 12,960 Selling expenses 99,480 Beginning retained earnings 114,960 Sales revenue 409,360 Ending retained earnings 134,780 Income tax expense 27,420 Dividend revenue 71,640 Cost of goods sold 184,410 Sales returns and allowances 12,940 Administrative expenses 83,880 Allocation to noncontrolling interest

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