Question

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 3, 200,000 97,000 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 31,000 1,360,000 370,000 470,000 235,000 96,000 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: 1. Prepare a single-step income statement for 2021, including EPS disclosures. 2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

Answer 1

single step income statement
revenues
sale revenue					3200000
interest revenue					97000
total revenue					3297000
expenses
cost of goods sold				1360000
selling expenses				470000
general & adm expenses				235000
interest exp				96000
loss on sale of investment				31000
loss on inventory written down				370000
total expenses					2562000
income before tax					735000
income tax					183750
net income					551250
earning per share (551250/300000)					1.84
multi step income statement
revenues
sale revenue					3200000
cost of goods sold					1360000
gross profit					1840000
operating expenses
selling expenses				470000
general & adm expenses				235000
loss on inventory written down				370000
total operating expenses					1075000
income from operations					765000
other revenues & expenses
interest revenue				97000
interest exp				-96000
loss on sale of investment				-31000
net other income					-30000
income before tax					735000
income tax					183750
net income					551250
earning per share (551250/300000)					1.84