Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following incorrect income statement was prepa

The following incorrect income statement was prepared by the accountant of the Axel Corporation: ...

50.1K

Verified Solution

Question

Accounting

The following incorrect income statement was prepared by the accountant of the Axel Corporation:

AXEL CORPORATION Income Statement For the Year Ended December 31, 2016
Revenues and gains:
Sales $ 780,000
Interest and dividends 51,000
Gain on sale of investments 98,000
Total revenues and gains 929,000
Expenses and losses:
Cost of goods sold $ 420,000
Selling expenses 78,000
Administrative expenses 98,000
Interest 45,000
Restructuring costs 74,000
Income taxes 85,600
Total expenses and losses 800,600
Net Income $ 128,400
Earnings per share $ 1.28

Required:

Prepare a multiple-step income statement for 2016 applying generally accepted accounting principles. The income tax rate is 40%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

what information is necessary to prepare for the processing of payroll?

Accounting
Q

According to Michael Anton, what are San Francisco Values? What value does he claim is missing...

Psychology
Q

What is a slew rate ? List causes of the slew rate Find the maximum frequency for...

Electrical Engineering
Q

What ultimately happens to the carbons that start the citric acid cycle?A. They become part...

Biology
Q

Find the area of this rectangle 8 m 13 m 2 m

Geometry
Q

Sugar content A broth used to manufacture a pharmeceutical product has its sugar content in...

Statistics
Q

xercise Three: On December 31,20XX, the trail balance of Jordan Restaurant shows the following UNADUSTED...

Accounting
Q

ABC Co has a manufacturing capacity of 10,000 units. The flexed production cost budget of...

Accounting
Q

Classify costs as variable costs, fixed costs, or mixed costs Compute the contribution margin, the...

Accounting
Q

Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash...

Accounting
Q

Content Area The accounts in the ledger of Monroe Entertainment Co. are listed below. All...

Accounting
Q

Which of the following debts can be discharged in a bankruptcy case? A. Property taxes...

Accounting