Based on the given information, and assuming 20,000 shares of common stock have been outstanding for…
Interim Reporting – The Hill Company prepares quarterly and year-to-date interim reports. The following is its interim income statement for the quarter ended March 31, 2007:
Sales (net)
$150,000
Cost of goods sold
-90,000
Gross profit
$60,000
Operating expenses
Selling expenses
$18,000
General expenses
10,600
Depreciation expense
8,000
-36,600
Pretax operating income
$23,400
Other items
Dividend revenue
$600
Interest expense
-1,000
-400
Income before income taxes
$23,000
Income tax expense
-7,000
Net income
$16,000
Earnings per share (20,000 shares)
$0.80
On June 30, 2007, the company accountant completed a worksheet in preparation for developing the year-to-date interim income statement. The following are the accounts and amounts listed in the income statement debit and credit columns of this worksheet:
Debit
Credit
Sales (net)
$340,000
Interest revenue
500
Dividend revenue
1,000
Cost of goods sold
$190,000
Selling expenses
50,000
General expenses
20,000
Depreciation expense
16,000
Interest expense
2,100
Income tax expense
19,200
Required
Based on the given information, and assuming 20,000 shares of common stock have been outstanding for the entire 6 months, for the Hill Company prepare:
1. A year-to-date interim income statement for the first 6 months of 2007.
2. An interim income statement for the second quarter of 2007.
