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Volata Company began operations on January 1, 2019. In the second quarter of 2020, It adopted the FIFO method of Inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income cost of goods sold (FIFO) 1sto $ 31,000 6,100 4,100 7,100 4,300 $ 21,600 5,400 $ 20,800 5,200 $ 15,600 $ 16,200 Net income Net income per common share 2ndq $ 33,000 2019 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 1stQ 2ndQ 3rdQ $5,900 $6,700 $7,300 Three Months Ended June 30 2019 2020 2019 S 3rdQ $ 35,000 7,900 4,700 $ 22,400 5,600 $ 16,800 Answer is not complete. 18,300 s 18.30 4thQ $ 37,000 9,100 5,100 $ 22,000 5,700 $ 17,100 Sales for the second quarter of 2020 are $41,000, cost of goods sold under the FIFO method is $11,100, and operating expenses are $5,500. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020 (Round "Earnings per share" answers to 2 decimal places.) 2020 1sto $ 39,000 10,600 5,300 4thQ $ 8,100 Six Months Ended June 30 2019 2020 $ 23,100 5,775 $ 17,325 2020 15tQ $9,500

Volata Company began operations on January 1, 2019. In the second quarter of 2020, It adopted the FIFO method of Inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income cost of goods sold (FIFO) 1sto $ 31,000 6,100 4,100 7,100 4,300 $ 21,600 5,400 $ 20,800 5,200 $ 15,600 $ 16,200 Net income Net income per common share 2ndq $ 33,000 2019 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 1stQ 2ndQ 3rdQ $5,900 $6,700 $7,300 Three Months Ended June 30 2019 2020 2019 S 3rdQ $ 35,000 7,900 4,700 $ 22,400 5,600 $ 16,800 Answer is not complete. 18,300 s 18.30 4thQ $ 37,000 9,100 5,100 $ 22,000 5,700 $ 17,100 Sales for the second quarter of 2020 are $41,000, cost of goods sold under the FIFO method is $11,100, and operating expenses are $5,500. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020 (Round "Earnings per share" answers to 2 decimal places.) 2020 1sto $ 39,000 10,600 5,300 4thQ $ 8,100 Six Months Ended June 30 2019 2020 $ 23,100 5,775 $ 17,325 2020 15tQ $9,500

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
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Volata Company began operations on January 1, 2019. In the second quarter of 2020, It adopted the FIFO method of inventory valuation. In the past, It used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income Cost of goods sold (FIFO) 1stQ $ 31,000 6,100 4,100 $ 20,800 5,200 $ 15,600 Net income Net income per common share: 1stQ $5,900 2ndQ $ 33,000 7,100 4,300 Three Months Ended June 30 2019 2020 $ 21,600 5,400 $ 16,200 S 2019 18,300 S 18.30 2019 3rdQ $ 35,000 Answer is not complete. 7,900 4,700 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows $ 22,400 5,600 $ 16,800 2ndQ 3rdQ $6,700 $7,300 4thQ $ 37,000 9,100 5,100 $ 22,800 5,700 $ 17,100 Six Months Ended June 30 2019 2020 4thQ $ 8,100 Sales for the second quarter of 2020 are $41,000, cost of goods sold under the FIFO method is $11,100, and operating expenses are $5,500. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding 2020 1stQ $ 39,000 Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) 10,600 5,300 $ 23,100 5,775 $ 17,325 2020 1stQ $9,500
Transcribed Image Text:Volata Company began operations on January 1, 2019. In the second quarter of 2020, It adopted the FIFO method of inventory valuation. In the past, It used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow: Sales Cost of goods sold (LIFO) Operating expenses Income before income taxes Income taxes (25%) Net income Cost of goods sold (FIFO) 1stQ $ 31,000 6,100 4,100 $ 20,800 5,200 $ 15,600 Net income Net income per common share: 1stQ $5,900 2ndQ $ 33,000 7,100 4,300 Three Months Ended June 30 2019 2020 $ 21,600 5,400 $ 16,200 S 2019 18,300 S 18.30 2019 3rdQ $ 35,000 Answer is not complete. 7,900 4,700 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows $ 22,400 5,600 $ 16,800 2ndQ 3rdQ $6,700 $7,300 4thQ $ 37,000 9,100 5,100 $ 22,800 5,700 $ 17,100 Six Months Ended June 30 2019 2020 4thQ $ 8,100 Sales for the second quarter of 2020 are $41,000, cost of goods sold under the FIFO method is $11,100, and operating expenses are $5,500. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding 2020 1stQ $ 39,000 Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30, 2020. (Round "Earnings per share" answers to 2 decimal places.) 10,600 5,300 $ 23,100 5,775 $ 17,325 2020 1stQ $9,500
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