Rudolph Corporation reports the following information: $\begin{array}{llcc} \text { Net income............................................................. } & \$900,000 \\ \text {Dividends on common shares...................................... } &\$252,000\\ \text { Dividends on preferred shares............................................ } &\$90,000\\ \text { Weighted average common shares outstanding....................... } &300,000\\ \end{array}$ Rudolph should report earnings per share of

A) $1.86. B) $2.16. C) $2.70. D) $3.00. A) $1.86. B) $2.16. C) $2.70. D) $3.00.

The following information is available for Pear Limited for 2020: $\begin{array}{llcc} \text {Accounts payable, beginning.................................................................... } &\$14,000 \\ \text { Cash payments on account during year.................................................... } &54,000\\ \text {Purchase discounts taken during year on 2020 purchases.......................... } &1,200\\ \text {Accounts payable, ending.......................................................................... } &7,000\\ \end{array}$ Assuming the company records purchases at gross amounts, the total purchases for 2020 would be

A) $48,200. B) $61,000. C) $55,200. D) $59,800. A) $48,200. B) $61,000. C) $55,200. D) $59,800.

Use the following information for the following questions: The 2019 and 2020 financial statements of Banana Inc. contained the following errors: $\begin{array}{c} \begin{array}{lll} \\ \text {Ending inventory}\\ \text { Insurance expense} \end{array} \begin{array}{c} \underline{2019}\\ \text {\$ 10,000 \quad overstated}\\ \text {4,800 \quad understated} \end{array} \begin{array}{c} \underline{2020}\\ \text { \$ 16,000 \quad understated}\\ \text {2,600 \quad overstated} \end{array} \end{array}$ -Assuming that none of the errors were detected or corrected, by what amount will 2019 income before taxes be overstated or understated?

A) $5,200 understated B) $5,200 overstated C) $14,800 overstated D) $14,800 understated A) $5,200 understated B) $5,200 overstated C) $14,800 overstated D) $14,800 understated

Multiple-step income statement Shown below is an income statement for 2020 that was prepared by a junior accountant at Fritter Corporation. $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $FRITTER CORPORATION $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Income Statement $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $December 31, 2020 \(\begin{array}{llcc} \text { Sales revenue............................................................... } &\$975,000 \\ \text {Investment revenue..................................................... } &19,500\\ \text { Cost of merchandise sold............................................ } &(408,500)\\ \text {Selling expenses. ......................................................... } &(115,000)\\ \text { Administrative expenses.............................................. } &(215,000)\\ \text { Interest expense............................................................ } &\underline{(13,000)}\\ \text {Income before special items............................................ } &203,000\\ \text {Special items } &\\ \text { Loss on disposal of a segment of the business................. } &(30,000)\\ \text {Major fire loss................................................................. } &(80,000)\\ \text {Net income tax liability................................................... } &\underline{(27,900)}\\ \text { Net income.....................................................................} &\underline{\underline{\$65,100}}\\ \end{array}\) Instructions In good form, prepare a multiple-step income statement for 2020 for Fritter Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Fritter Corporation has 50,000 common shares outstanding and has a 20% income tax rate on all tax-related items. As a private corporation, Fritter does not disclose earnings per share information.

The answer of Multiple-step income statement Shown below is an income...

Which of the following should be reported as an adjustment to retained earnings? $\begin{array}{llcc} \text { Change in Estimated Lives } & \text { Change from Unaccepted } \\ \underline{\text { of Depreciable Assets }} &\underline{ \text { Principle to Accepted Principle} } \\ \end{array}$ a)$\begin{array}{llcc} \text {Yes}& \quad\quad\quad\quad\quad\quad\quad\quad\text {Yes} \end{array}$ b)$\begin{array}{llcc} \text {No}& \quad\quad\quad\quad\quad\quad\quad\quad\text {Yes} \end{array}$ c)$\begin{array}{llcc} \text {Yes}& \quad\quad\quad\quad\quad\quad\quad\quad\text {No} \end{array}$ d)$\begin{array}{llcc} \text {No}& \quad\quad\quad\quad\quad\quad\quad\quad\text {No} \end{array}$

The answer of Which of the following should be reported...

Use the following information for the following questions: Ignore taxes. Peach Inc.'s financial statements for the years 2019 and 2020 contained errors as follows: $\begin{array}{c} \begin{array}{lll} \\ \text {Ending inventory}\\ \text { Depreciation Expense} \end{array} \begin{array}{c} \underline{2019}\\ \text {\$ 3,000 \quad understated}\\ \text {5,500 \quad overstated } \end{array} \begin{array}{c} \underline{2020}\\ \text { \$ 5,000 \quad overstated}\\ \text {3,500 \quad overstated} \end{array} \end{array}$ -Assuming that none of the errors were detected or corrected, by what amount will retained earnings at December 31, 2020 be overstated or understated?

A) $4,000 understated B) $5,000 overstated C) $8,500 understated D) $11,500 understated A) $4,000 understated B) $5,000 overstated C) $8,500 understated D) $11,500 understated