| Total Assets | $7,082,500 | |
| Total Liabilities | | 1,700,000 |
| Common Stock | | 1,250,000 |
| Additional Paid in Capital | | 2,097,500 |
| Donated Capital | | 90,000 |
| Ret. Earnings 1/1/Year4 | | 1,650,000 |
| Net Sales | | 6,250,000 |
| Cost of Sales | 3,750,000 | |
| Selling & Adm Expenses | 1,212,500 | |
| Interest Expense | 122,500 | |
| gain on sale of LT Investments | | 130,000 |
| Income Tax Expense | 300,000 | |
| Loss on Disposition of Plant Assets | 225,000 | |
| Loss due to Earthquake Damage | 475,000 | |
Pucket Corp. is in the process of preparing its financialstatements for the year ended December 31, Year4. Before closingthe books, it prepared the above Condensed Trial Balance Sheet.
Other financial data for the year ended December 31, Year 4:
- Sales returns and allowances equaled $215,000, and salesdiscounts taken were $95,000.
- Estimated federal income tax payments were $200,000 andaccrued federal income taxes equaled $100,000. The total charged toincome tax expense does not properly reflect current or deferredincome ta expense or interperiod income tax allocation for incomestatement purposes. The enacted tax rate on all types of taxableincome for the current and future years is 30%. The alternativeminimum tax is less than the regular income tax.
- Interest expense includes 6% interest on 20 year bonds issuedat their face amount of $1,500,000.
- A $90,000 excess of carrying amount over tax basis indepreciable assets arose from receipt of a contribution ofequipment by a local government on December 31, Year 4. it isexpected to be depreciated over 5 years beginning in Year 5. Therewere no temporary differences prior to Year 5.
- Officer's Life insurance expense (not tax deductible) is$70,000.
- The earthquake damage is considered unusual and infrequent,but the disposition of plant assets is considered infrequent butnot unusual. Moreover, the disposition of plant assets was not adisposal of a component of an entity.
- The shares of common stock ($5 par) traded on a nationalexchange:
| Outstanding at 1/1/Year 4 | 200,000 |
| Issued on 3/30 Year 4 as 10% Stock Dividend | 20,000 |
| Issued Shares for $25 per share on 6/30/Year 4 | 30,000 |
| Outstanding at 12/31/Year 4 | 250,000 |
| |
- Puckett declared a $1.25 common stock dividend on December 28,Year 4.
Using this information enter the correct amounts for PucketCorporation's income statement for the year ended December 31, Year4.
| Net Sales | | |
| Cost of Sales | | |
| Gross Profit | | |
| Selling & Administrative Expenses | | |
| Income from Operations | | |
| Other Revenues and Gains: | | |
| Gain on Sale of LT Investments | | |
| Other Expenses and Losses: | | |
| Interest Expense | | |
| Loss on Disposition of Plant Assets | | |
| Income from continuing operations before income tax | | |
| Income Tax Expense: | | |
| Current Tax Expense | | |
| Deferred Tax Expense | | |
| Income Before Extraordinary Item | | |
| Extraordinary item-loss from Earthquake(net of applicabletaxes) | | |
| Net Income | | |
(if you could show all calculations as well that would beawesome!)
