Presented below is information related to Farr Company. Retained earnings, Decem

Question

Presented below is information related to Farr Company. Retained earnings, December 31, 2014 $ 664,500 Sales revenue 1,504,600 Selling and administrative expenses 243,000 Hurricane loss (pre-tax) on plant (extraordinary item) 287,900 Cash dividends declared on common stock 33,600 Cost of goods sold 855,900 Gain resulting from computation error on depreciation charge in 2013 (pre-tax) 526,300 Other revenue 129,900 Other expenses 103,300Prepare in good form a multiple-step income statement for the year 2015. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year

Explanation / Answer

Paticular Amt. Sales Revenue       1,504,600 Other revenue          129,900 Total Revenue       1,634,500 Cost of goods Sold          855,900 Selling & Administrative Exp.          243,000 Other Expenses          103,300 Depriciation          526,300 Loss on sale of Plant          287,900 Profit before tax         -381,900 Divedend            33,600 Retained profit previous year          664,500 Reatined profit transferred to balance Sheet          249,000

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