Homework Help: college accounting

Posted by chris on Tuesday, October 6, 2009 at 10:55am.

For its fiscal year ending October 31, 2010, Molini Corporation reports the following partial data.

Income before income taxes $540,000
Income tax expense (30% $390,000) 117,000

Income before extraordinary items 423,000
Extraordinary loss from flood 150,000

Net income $273,000

For its fiscal year ending October 31, 2010, Molini Corporation reports the following partial data.
Income before income taxes $540,000
Income tax expense (30% $390,000) 117,000

Income before extraordinary items 423,000
Extraordinary loss from flood 150,000

Net income $273,000

The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.

Instructions

Complete the correct income statement, beginning with income before income taxes.

MOLINI CORPORATION
Partial Income Statement
For the Year Ended October 31, 2010

Income before income taxes $
Income tax expenseExtraordinary loss from floodIncome before extraordinary item

Income before extraordinary itemIncome tax expenseExtraordinary loss from flood
Income before extraordinary itemIncome tax expenseExtraordinary loss from flood

Net income $

The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.

Instructions

Explain in memo form why the income statement data are misleading

college accounting - Writeacher, Tuesday, October 6, 2009 at 11:02am
Tonya or Chris or whoever,

Please note that we don't do students' homework for them. Be sure to go back into your textbook or use a good search engine. http://hanlib.sou.edu/searchtools/

Once YOU have come up with attempted answers to YOUR questions, please re-post and let us know what you think. Then someone here will be happy to comment on your thinking.
college accounting - Anonymous, Tuesday, June 14, 2011 at 1:56am
Solution Close
E15-12 (a)
MOLINI CORPORATION
Partial Income Statement

For the Year Ended October 31, 2008
Income before income taxes $540,000
Income tax expense ($540,000 × 30%)

162,000
Income before extraordinary item 378,000
Extraordinary loss from flood, net of $45,000
tax savings ($150,000 × 30%)

105,000
Net income

$273,000

Copyright © 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved.
college accounting - Anonymous, Tuesday, June 14, 2011 at 1:57am
Complete the correct income statement, beginning with income before income taxes.

MOLINI CORPORATION
Partial Income Statement

For the Year Ended October 31, 2008
Income before income taxes $ 540000
Income tax expense

162000
Income before extraordinary item 378000
Extraordinary loss from flood

105000
Net income

$ 273000

Answer this Question

Related Questions

Managerial accounting - For its fiscal year ending October 31, 2008, Molini ...
accounting - Marina Sailboats reports income before income taxes of $80,000 ...
accounting - Complete the work sheet. In completing the worksheet, compute State...
accounts - The differences between the book basis and tax basis of the assets ...
accounting - Income Statement Data: This year Last year Revenue $150,000 $120,...
Fiance - Use your knowledge of income statements to fill in the missing items: ...
Finance - P5. Use your knowledge of income statements to fill in the missing ...
Accounting - Peck Company The Peck Company reported the following items on its ...
Finance 200 - 11. The Sterling Tire Company’s income statement for 2008 is ...
Account - Peck Company: The Peck Company reported the following items on its ...

For Further Reading

First Name:
School Subject:
Answer: