Question

The following is a partial trial balance for the Green Star Corporation as of December 31, 2021: Debits Credits 1,550,000 38,000 58,000 Account Title Sales revenue Interest revenue Gain on sale of investments Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 770,000 200,000 83,000 48,000 138,000 There were 110,000 shares of common stock outstanding throughout 2021. 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

Answer 1

1 single steg income statement : Green. star cosportation. Income statement for the year ended December 31, 2021. Revenues and gains. sales Revenue Interest revenue Gain on sale of investment Total revenues & gains. $1,550,000 38,000 58,000 $1,646,000 Expenses & losses: cost of goods sold $770,000 selling expenses 200,000 General & admin expenses. 83,000 Interest expense. 48,000 Income tax expense. Total expenses & losses. Income before income taxes. cess: Income tan expense. Net income (a) total common stock outstanding. - (b) Earnings per share = (alb). $1101,000 $545,000 138,000 $407,000 110,000 $3.7 pee share

2) multi-step income statement : GREEN STAR CORPORATION Income statement for the year ended December 31, 2021. sales Revenue. $1,550,000 790,000 cessi cost of goods sold 780,000 Gross Profit Operating expenses :- selling expenses. $ 200,000 General & admin expenses. 83,000 $ 283,000 total operating expenses. $ 497,000 Operating in come Other income cexpenses) Interest revenue. $ 38,000 Gain on sale of investments 58,000 Interest expense. (48,000) Total $48.000 other income Income before $545,000 income tanes. cess: Income tax expense. 138,000 Net income a $4071000 Total common outstanding shares (6) 110,000 Earnings Per share – calb). $3.7 per share

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