Question

please complete required 1 and 2 and explain work

Exercise 4-2 (Algo) Income statement format; single step and multiple step [LO4-1, 4-5) The following is a partial trial balance for the Green Star Corporation as of December 31, 2021: Account Title Sales revenue Debits Credits 1,800,000 43,000 63,000 Interest revenue Gain on sale of investments Cost of goods sold Selling expenses General and administrative expenses Interest expense 820,000 225,000 88,000 53,000 143,000 ok Income tax expense int There were 100,000 shares of common stock outstanding throughout 2021. епces Required: 1. Prepare a single-step income statement for 2021, including EPS disclosures. 2. Prepare a multiple-step income statement for 2021, including EPS disclosures. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a single-step income statement for 2021, including EPS disclosures. (Round EPS answer to 2 decimal places.) GREEN STAR CORPORATION Income Stateoment For the Year Ended December 31, 2021

Answer 1

Solution:

Required 1: Single Step Income statement for 2021

GREEN STAR CORPORATION
Income statement
For the Year Ended December 31,2021
Revenues and gains:
Sales Revenue		$          1,800,000
Interest Revenue		$                43,000
Gain on sale of investments		$                63,000
Totals Revenues and gains: (a)		$          1,906,000
Expenses and Losses
Cost of goods sold	$        (820,000)
Selling expenses	$        (225,000)
General and administrative expense	$          (88,000)
Interest Expense	$          (53,000)
Total Expenses and Losses (b)		$       (1,186,000)
Income before income taxes (a-b)		$             720,000
Income Tax expense		$           (143,000)
Net Income		$             577,000
Earnings per share ( $ 577,000 / 100,000 Shares		5.77

Required 2: Multiple Step Income statement for 2021

GREEN STAR CORPORATION
Income statement
For the Year Ended December 31,2021
Sales Revenue		$          1,800,000
Cost of goods sold		$           (820,000)
Gross Profit		$             980,000
Operating expenses
Selling expenses	$        (225,000)
General and administrative expense	$          (88,000)
Total operating expenses		$           (313,000)
Operating income		$             667,000
Other income (expense)
Interest revenue	$            43,000
Gain on sale of investments	$            63,000
Interest Expense	$          (53,000)
Total other income, net		$                53,000
Income before income taxes		$             720,000
Income Tax expense		$           (143,000)
Net Income		$             577,000
Earnings per share ( $ 577,000 / 100,000 Shares )		$                    5.77