Question

Do It! Review 5-05 x Your answer is incorrect. Try again. The following information is available for Flounder Corp. for the year ended-December 31, 2020: Other revenues and gains other expenses and losses Cost of goods sold Other comprehensive income $11,200 13,800 Sales revenue Operating expenses Sales returns and allowances $604,000 196,000 45,000 7,000 Prepare a multiple-step income statement for Flounder Corp. and a comprehensive income statement. (List other revenues before other expenses. Enter negative amounts using either a negative sign preceding the numbe e.g.-45 or parentheses e.o. (45).) FLOUNDER CORP. Income Statement

Answer 1

Answer- FLOUNDER CORP.

Income Statement

For the year Ended December 31,2020

Sales
Sales Revenue		604,000
Less: Sales Returns and Allowance		(45,000)
Net Sales		559,000
Cost of Goods Sold		(165,000)
Gross Profit		394,000
Operating Expenses		(196,000)
Income From Operations		198,000
Other Revenue and Gains	11,200
Other Expenses and Losses	(13,800)
		(2,600)
Net Income		195,400

  

  FLOUNDER CORP.

Comprehensive Income Statement

For the year Ended December 31,2020

Net income	$ 195,400
Other comprehensive income	$ 7,000
Comprehensive Income (Transferred to retained earnings)	$        202,400

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