Income Statement Assigment

| October 3, 2018

Quiz 2

Acct 2241

Name
__________________________

Wiet

Shown
below is an income statement

for 2004 that was prepared by a

poorly
trained bookkeeper of Henry

Corporation.

Henry

Corporation

INCOME STATEMENT

December 31, 2004

Sales
revenue

$1,100,000

Investment
revenue

19,500

Cost of merchandise sold

(530,500)

Selling expenses

(155,000)

Administrative
expense

(215,000)

Interest expense

(13,000)

Income before special items

——————————

206,000

Special items

(30,000)

Loss on disposal of a component of the
business

Major casualty loss
(extraordinary item)

(90,000)

Net federal income tax liability

(25,800)

Net income

——————————

$

60,200

INSTRUCTIONS

Prepare a multiple-step income
statement for 2004 for Henry Corporation that is presented in accordance with
generally accepted accounting principles (including format and terminology).
Henry Corporation has 50,000 shares of common stock outstanding and has a 30%
federal income tax rate on all tax related items. Round all earnings per share
figures to the nearest cent.

Get a 20 % discount on an order above $ 40
Use the following coupon code:
LOBSTER
Positive SSL