Question

Problem 4-1

The following is a partial trial balance for Apex Computer Corporation as of December 31, 2016:

Apex Computer Corporation
Partial Trial Balance
December 31, 2016

Account Title	Debits	Credits
Sales Revenue		3,400,000
Interest Revenue		35,000
Gain on sale of investments		30,000
Cost of goods sold	2,250,000
Restructuring costs	400,000
Administrative expense	450,000
Selling expense	150,000
Interest expense	20,000

500,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been accrued. The income tax rate is 40%.

Requirements

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1. Prepare a single-step income statement for 2016, including EPS disclosure.

2. Prepare a multiple-step income statement for 2016, including EPS disclosure.

А в с Student Name: Class: Problem 04-06 mo REMBRANDT PAINT COMPANY Income Statement For the year ended December 31, 2021 10 11 12 13 14 15 16 17 18 ($ in thousands, except per share amounts) Sales revenue Cost of goods sold Gross profit Operating expenses: Selling and administrative expense Restructuring costs Operating income Other income (expense): Interest revenue Interest expense Other income, net Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income from operations of discontinued component Income tax expense Income on discontinued operations Net income 21 500 shares Earnings per share: Income from continuing operations Income from discontinued operations Net income

Answer 1

1			Income statement
						$	$
	Revenues and gains:
	Sales revenue						3400000
	Interest revenue						35000
	Gain on sale of investments						30000
	Total revenues and gains						3465000
	Expenses:
	Cost of goods sold					2250000
	Restructuring costs					400000
	Administrative expense					450000
	Selling expense					150000
	Interest expense					20000
	Total expenses						3270000
	Income before taxes						195000
	Less: Tax at 40%						78000
	Net income						117000
	Earnings per share:
	Net income			(117000/500000)			0.234
2			Income statement
						$	$
	Sales revenue						3400000
	Less: Cost of goods sold						2250000
	Gross profit						1150000
	Less:Operating expenses
	Restructuring costs					400000
	Administrative expense					450000
	Selling expense					150000
	Total operating expenses						1000000
	Operating income						150000
	Other income (expense):
	Interest revenue					35000
	Gain on sale of investments					30000
	Interest expense					-20000
	Total other income,net						45000
	Income before taxes						195000
	Less: Tax at 40%						78000
	Net income						117000
	Earnings per share:
	Net income			(117000/500000)			0.234