Question

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,950,000 92,000 points 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 28,500 1,310,000 320,000 420,000 210,000 91,000 eBook Hint 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%. Required: Print 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

Answer
Single - Step Income Statement:
General lighting corporation
Income Statement
For the year ended December 31, 2021
Revenues
Sales revenue		$      2,950,000
Interest revenue		$           92,000
Total Revenue		$      3,042,000
Expenses:
Cost of goods sold	$      1,310,000
Selling Expenses	$         420,000
General and Administrative expenses	$         210,000
Interest expense	$           91,000
Loss on sale of Investment	$           28,500
Loss due to written down of inventory	$         320,000
Total Expenses		$      2,379,500
Income before income tax		$         662,500
Income tax @25%		$         165,625
Net Income		$         496,875
Earnings per share ($496875 / 300000 shares)		1.66

Multiple - Step Income Statement:
General lighting corporation
Income Statement
For the year ended December 31, 2021
Revenues
Sales revenue		$      2,950,000
Cost of goods sold		$      1,310,000
Gross profit on sales		$      1,640,000
Operating Expenses:
Selling Expenses	$         420,000
General and Administrative expenses	$         210,000
Loss due to written down of inventory	$         320,000
Total operating expense		$         950,000
Income from operations		$         690,000
Other Revenues and expenses
Interest revenue	$           92,000
Interest expense	-$          91,000
Loss on sale of Investment	-$          28,500
Net other income		-$          27,500
Income before income tax		$         662,500
Income tax @25%		$         165,625
Net Income		$         496,875
Earnings per share ($496,875 / 300000 shares)		$               1.66