Question: The following information was taken from the
The following information was taken from the records of Daughtry Cosmetics, Inc., at December 31, 2016:
Requirements
1. Using the End-of-Chapter Summary Problem as an example, prepare Daughtry Cosmetics’ single-step income statement, which lists all revenues together and all expenses together, for the fiscal year ended December 31, 2016. Include earnings-per-share data. For purposes of earnings per share, assume dividends have been declared on preferred stock as of December 31.
2. Evaluate income for the year ended December 31, 2016. Daughtry’s top managers hoped to earn income from continuing operations equal to 7% of sales.
Transcribed Image Text:
$ 21,000 Prior-period adjustment–net of taxes debit to Retained Earnings . Interest expense.. $ 5,000 Gain on lawsuit settlement. 6,000 Income tax expense (savings): Dividend revenue 12,000 Treasury stock, common (1,000 shares at cost). General expenses. Continuing operations. 27,600 Income from discontinued 16,000 operations. Loss on sale of plant assets. 4,800 70,900 10,000 Sales revenue.. 536,000 Income from discontinued Retained earnings, beginning, as originally reported. Selling expenses.. Common stock, no par, operations.. Preferred stock, 6%, $25 par, 12,000 196,000 81,000 1,000 shares issucd. 2.5,000 Cost of goods sold. . Dividends declared on common stock... 302,000 21,000 shares authorized 28,000 and issued . 350,000
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