Asked by David Garcia on May 21, 2024
Verified
Johnson Corporation is completing the accounting information processing cycle at the end of the fiscal year,June 30,2019.Johnson has provided the following trial balances as of June 30,2019:
A.Reconstruct the adjusting entries and prepare a brief explanation of each.
B.What is the amount of net income?
C.Calculate earnings per share (EPS)assuming 1,000 shares of common stock are outstanding.
Accounting Information Processing Cycle
The series of steps followed in the accounting process to record, classify, summarize, and report a business's financial transactions.
Adjusting Entries
Journal entries made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial statement.
Earnings Per Share
A financial metric that measures the net income earned per share of a company's outstanding stock.
- Master the methodology behind the preparation of adjusting entries in accounting.
- Analyse the impact of correction entries on the financial statements.
- Determine the net profit, retained gains, and earnings for each share.
Verified Answer
SP
Samra ProductionsMay 23, 2024
Final Answer :
A.
B.Net income = $16,300 = $38,300 - $16,100 - $5,500 - $400.
C.EPS = $16.30 = $16,300 ÷ 1,000.
B.Net income = $16,300 = $38,300 - $16,100 - $5,500 - $400.
C.EPS = $16.30 = $16,300 ÷ 1,000.
Learning Objectives
- Master the methodology behind the preparation of adjusting entries in accounting.
- Analyse the impact of correction entries on the financial statements.
- Determine the net profit, retained gains, and earnings for each share.