Question: John Holland, accountant for Sunny Pie Foods,
John Holland, accountant for Sunny Pie Foods, was injured in an auto accident. While he was recuperating, another inexperienced employee prepared the following income statement for the fiscal year ended June 30, 2012:
The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and some accounts do not belong on the income statement at all. Also, income tax (30%) has not been applied to all appropriate figures. Sunny Pie Foods issued 17,000 shares of common stock back in 2004 and held 7,000 shares as treasury stock all during the fiscal year 2012.
Requirement
Prepare a corrected Statement of Comprehensive Income for Sunny Pie Foods for the fiscal year ended June 30, 2012. Include net income, which lists all revenues together and all expenses together, as well as other comprehensive income, net of tax. After calculating comprehensive income, prepare the earnings-per-share section of the statement.
Transcribed Image Text:
Sunny Pie Foods, Inc. Income Statement June 30, 2012 Revenuc and gains: Sales $894,000 Paid-in capital in excess of par-common Total revenucs and gains 11,000 905,000 Expenses and losses: Cost of goods sold Selling expenses General expenses $400,000 102,000 92,000 Sales returns 20,000 Unrealized loss on available-for-sale investments 10,000 Dividends paid 16,000 Sales discounts 14,000 Income tax expense Total expenses and losses 29,000 683,000 222,000 Income from operations Other gains and losses: Extraordinary gain Loss on discontinucd operations Total other gains (losses) 36,000 (25,000) 11,000 $233,000 $ 23.30 Net income Earnings per share
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