Question

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2021, included the following accounts: Account Title Debits Credits Multiple-step continuous statement of comprehensive income LO4-1, LO4-5, LO4-6 $2,300,000 Sales revenue Cost of goods sold Selling and administrative expense Interest expense Gain on debt securities $1,400,000 420,000 40,000 80,000 The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 25%. There were 1,000,000 shares of common stock outstanding throughout 2021. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021, including appropriate EPS disclosures.

Answer 1

Lindor Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 $ 2,300,000.00 $ 1,400,000.00 $ 900,000.00 $ 420,000.00 $ 480,000.00 Sales Revenue Cost of goods sold Gross profit Operating expenses : Selling and administratvie expenses Operating Income Other income (expense) Interest expense Income before tax expense Income tax expense Net Income Other Comprehensive income Unrealized Holding gains on investment securities, net of tax Comprehensive income Earnings per share: Net Income $ 40,000.00 $ 440,000.00 $ 110,000.00 $ 330,000.00 $ 80,000.00 $ 410,000.00 0.33

Answer 2

The gain on debt securities should be 80,000 - .25*80,000