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andriy [413]
3 years ago
7

During 2017, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (William

son’s first year of operations) under FIFO was $160,000 and $180,000, respectively. Pretax income using weighted-average pricing in the prior years would have been $145,000 in 2016 and $170,000 in 2015. In 2017, Williamson reported pretax income (using weighted-average pricing) of $180,000. Show comparative income statements for Williamson, beginning with "Income before income tax," as presented on the 2017 income statement. (The tax rate in all years is 30%.)
Business
1 answer:
sergeinik [125]3 years ago
8 0

Answer:

Explanation:

Comparative income statements for Williamson is presented below:

Particulars                                  2017                2016               2015

Income before income tax       $180,000      $145,000        $170,000

Less:Income tax                        $54,000        $43,500         $51,000

Net income                                $126,000      $101,500        $119,000  

The income tax is computed below:

For 2017

= $180,000 × 30%

= $54,000      

For 2016

= $145,000 × 30%

= $43,500    

For 2015

= $170,000 × 30%

= $51,000                            

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Question Completion:

Centerpiece Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for the company. The following data have been assembled for the business (Click the icon to view the assembled data of Centerpiece Arrangements.) Prepare the income statement of Centerpiece Arrangements for the year ended December 31, 2018. (If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Net Income

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Answer:

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Income Statement for the year ended December 31, 2024:

Service Revenue                       $92,000

Expenses:

Insurance expense $6,500

Utilities expense              800

Rent expense                 13,000

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a) Data:

Trial Balance as for December 31, 2024:

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Insurance Expense        6,500

Service Revenue                         92,000

Utilities Expense               800

Rent Expense               13,000

Common Stock                              7,000

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Dividends                     4,500

Accounts Receivable  3,500

Equipment                27,600

Total                      $106,800 $106,800

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