Johnson Corporation Is Completing the Accounting Information Processing Cycle at the End

question 78

Essay

Johnson Corporation is completing the accounting information processing cycle at the end of the fiscal year, June 30, 2014. Johnson has provided the following trial balances as of June 30, 2014:
Required:
A. Reconstruct the adjusting entries and give 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.

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Definitions:

High Income

Refers to earnings that significantly exceed the average or median income level within a specific region, industry, or demographic segment.

Double-Taxation

The taxation of the same income or financial transaction at two different levels, such as corporate profits and then again when distributed as dividends to shareholders.

Saving

Saving refers to the portion of income that is not spent on current consumption but preserved for future use, often by depositing in banks or investing.

Lower Incomes

Refers to the segment of the population or individuals who earn comparatively less money relative to the median income.