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BE4-1 BE4-10 BE4-11 E4-14

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BE4-1 Starr Co. had sales revenue of $540,000 in 2012. Other items recorded during the year were:
Cost of goods sold $330,000
Salaries and wages expense 120,000
Income tax expense 25,000
Increase in value of company reputation 15,000
Other operating expenses 10,000
Unrealized gain on value of patents 20,000

Prepare a single-step income statement for Starr for 2012. Starr has 100,000 shares of stock outstanding.

BE4-10 Portman Corporation has retained earnings of $675,000 at January 1, 2012. Net income during 2012 was $1,400,000, and cash dividends declared and paid during 2012 totaled $75,000. Prepare a retained earnings statement for the year ended December 31, 2012. Assume an error was discovered: land costing $80,000 (net of tax) was charged to maintenance and repairs expense in 2009.

BE4-11 On January 1, 2012, Richards Inc. had cash and common stock of $60,000. At that date, the company had no other asset, liability, or equity balances. On January 2, 2012, it purchased for cash $20,000 of equity securities that it classified as available-for-sale. It received cash dividends of $3,000 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $4,000 net of tax.

Determine the following amounts for 2012: (a) net income; (b) comprehensive income; (c) other comprehensive income; and (d) accumulated other comprehensive income (end of 2012).

E4-14 (Comprehensive Income) Armstrong Corporation reported the following for 2012: net sales
$1,200,000; cost of goods sold $720,000; selling and administrative expenses $320,000; and an unrealized holding gain on available-for-sale securities $15,000.

Prepare a statement of comprehensive income, using the two-income statement format. Ignore income
taxes and earnings per share.

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