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Presented below is information related to Bonita Corp
Presented below is information related to Bonita Corp. for the year 2017. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,399,500 788,200 65,800 53,500 22,100 7,420 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2016 Casualty loss Cash dividends declared Cash dividends decla Retained earnings at December 31, 2016 Effective tax rate of 34% on all items $80,440 43,600 53,900 43,300 1,042,400 Prepare a multiple-step income statement for 2017. Assume that 61,500 shares of common stock are outstanding. (Round earnings per share to 2 decimal places, e.g. 1.49.)
BONITA CORP. Income Statement
Prepare a separate retained earnings statement for 2017. (List items that increase adjusted retained earnings first.) BONITA CORP. Retained Earnings Statement
Expert Solution
Answer:
| BONITA CORP | ||
| Income Statement | ||
| For the year Ended December 31, 2017 | ||
| Revenues: | ||
| Net Sales | 13,99,500 | |
| Less: Cost of Goods Sold | -7,88,200 | |
| Gross Profit | 6,11,300 | |
| Operating expenses: | ||
| Selling Expenses | 65,800 | |
| Administrative Exenses | 53,500 | |
| Total operating expenses | -1,19,300 | |
| Income from operations | 4,92,000 | |
| Other Revenues and Gains: | ||
| Dividend Revenue | 22,100 | |
| Interest Revenue | 7,420 | 29,520 |
| 5,21,520 | ||
| Other Expenses and Losses: | ||
| Casualty Loss | -53,900 | |
| Write-off of inventory due to obsolescence | -80,440 | |
| Income before Income Tax | 3,87,180 | |
| Income Tax Expense (387180*34%) | -1,31,641 | |
| Net income | 2,55,539 | |
| Earnings per share (255539/61500) | 4.16 | |
| BONITA CORP | |
| Retained Earnings Statement | |
| For the year Ended December 31, 2017 | |
| Retained earnings, January 1 | 1042400 |
| Correction for overstatement of net income in prior period Depreciation error (43600-34%) |
-28776 |
| Retained earnings, January 1 adjusted | 1013624 |
| Add:Net Income | 2,55,539 |
| Less: Cash Dividends declared | -43300 |
| Retained earnings, December 31 | 12,25,863 |
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