Problem: Remesh Corporation prepared the following income statement and statement of retained earnings for the year ended December 31, 2021. Remesh Corporation December 31, 2021 Expense and Profit Statement Dollars in thousands Sales (net) $206,000 Less: Selling Expenses (20,600) Net Sales $185,400 Add: Interest Revenue 2,400 Add: Gain on sale of equipment 3,600 Gross Sales Revenue $191,400 Less: Cost of operations: Cost of Goods Sold $126,100 Correction of overstatement in last years income because of error $5,500 (net of tax credit) $3850 Dividend cost ($0.50 per share for 8k common shares) $4000 Unusual loss due to a hurricane, $6,400 (net of tax credit) $1,920 ($135,870) Taxable Revenues $55,530 Less: Income tax on income from continuing operations $16,659 Net income $38871 Miscellaneous Deductions Loss from operations of discontinued Division L. $3,600 (net of tax credit) $1,080 Administrative Expense $17,650 ($18,730) Net Revenues $20,141 Remesh Corporation Retained Revenues Statement For Year Ended December 31, 2021 Dollars in thousands Beginning retained earnings $59,300 Add: Gain on sale of Division, $4,500 (net of taxes) $3,150 Recalculated retained earnings $20,141 $82,591 Less: Interest Expense (-$3,310) Ending retained earnings $79,281 The preceding account balances are correct but have been incorrectly classified in certain instances assume income tax rate of 30 for all items. Can I get help with preparing a corrected 2021 “multi-step” income statement with EPS disclosure and a 2021 retained earnings statement and in good form? And preparing the 2021 retained earnings statement with correct balances?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Problem:

Remesh Corporation prepared the following income statement and statement of retained earnings for the year ended December 31, 2021.

Remesh Corporation

December 31, 2021

Expense and Profit Statement

Dollars in thousands

Sales (net)		$206,000
Less: Selling Expenses		(20,600)
Net Sales		$185,400
Add: Interest Revenue		2,400
Add: Gain on sale of equipment		3,600
Gross Sales Revenue		$191,400
Less: Cost of operations:
Cost of Goods Sold	$126,100
Correction of overstatement in last years income because of error $5,500 (net of tax credit)	$3850
Dividend cost ($0.50 per share for 8k common shares)	$4000
Unusual loss due to a hurricane, $6,400 (net of tax credit)	$1,920	($135,870)
Taxable Revenues		$55,530
Less: Income tax on income from continuing operations		$16,659
Net income		$38871
Miscellaneous Deductions
Loss from operations of discontinued Division L. $3,600 (net of tax credit)	$1,080
Administrative Expense	$17,650	($18,730)
Net Revenues		$20,141

Remesh Corporation

Retained Revenues Statement

For Year Ended December 31, 2021

Dollars in thousands

Beginning retained earnings	$59,300
Add: Gain on sale of Division, $4,500 (net of taxes)	$3,150
Recalculated retained earnings	$20,141
	$82,591
Less: Interest Expense	(-$3,310)
Ending retained earnings	$79,281

The preceding account balances are correct but have been incorrectly classified in certain instances assume income tax rate of 30 for all items.

Can I get help with preparing a corrected 2021 “multi-step” income statement with EPS disclosure and a 2021 retained earnings statement and in good form? And preparing the 2021 retained earnings statement with correct balances?

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