Question

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,650,000 86,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense points 25,500 1,250,000 260,000 360,000 180,000 85,000 Skipped eBook There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Hint Print Required: References 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.
Please answer both

Answer 1

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General Lightning Corporation
Single Step- Income Statement for the year ended December 31, 2021.
Particulars	Amount $	Amount $
Revenues
Sales Revenue	2,650,000.00
Interest Revenue	86,000.00
Total Revenues		2,736,000.00
Cost of goods sold		1,250,000.00
Gross Profit		1,486,000.00
Expenses
Selling expense	360,000.00
General and administrative	180,000.00
Interest Expense	85,000.00
Loss on inventory write down	260,000.00
Loss on sale of investments	25,500.00
Total Expense		910,500.00
Income before tax		575,500.00
Tax expense at 25%		143,875.00
Net Income		431,625.00
Common shares outstanding		300,000.00
Earnings Per Share		1.44

Multi Step- Income Statement for the year ended December 31, 2021
Particulars	Amount $	Amount $
Sales Revenue	2,650,000.00
Less: returns and allowances	-
Net Sales		2,650,000.00
Cost of goods sold		1,250,000.00
Gross Profit		1,400,000.00
Selling expense	360,000.00
General and administrative	180,000.00
Operating Expense		540,000.00
Operating Income		860,000.00
Interest Expense	(85,000.00)
Loss on inventory write down	(260,000.00)
Loss on sale of investments	(25,500.00)
Interest Revenue	86,000.00
Other expense and income		(284,500.00)
Income before tax		575,500.00
Tax expense at 25%		143,875.00
Income from continuing operations		431,625.00
Gain on Discontinued Operations- net of tax		-
Net Income		431,625.00
Common shares outstanding		300,000.00
Earnings Per Share		1.44