Question

 

The trial balance of Rollins Inc. included the following accounts as of December 31, 2023. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 40%. Prepare a 2023 multi-step, continuous income statement in proper form. Note: All numbers below are BEFORE tax. Debits Credits Sales revenue 5,900,000 Interest revenue 40,000 Loss on sale of investments 10,000 Unrealized losses on investments 150,000 Foreign currency translation gains 260,000 Cost of goods sold 4,400,000 Selling expenses 400,000 Restructuring costs 180,000 Interest expense 20,000 General and administrative expenses 300,000 Unearned Revenue 70,000 Allowance for Doubtful Accounts 10,000 Retained Earnings, as of December 31, 2023 820,000

Answer 1

Income Statement 5900000 4400000 1500000 400000 300000 180000 Sales Revenue Cost of goods sold Gross Profit Operating expenses: Selling General and administrative Restructuring costs Total operating expenses Operating Income Other income expense): Loss on sale of investments Interest revenue Interest expense Total other income, net Income before income taxes Income tax expense Net Income 880000 620000 -10000 40000 -20000 10000 630000 252000 378000 Earnings per share 3.78