Question

Brief Exercise 4-1 (Algo) Single-step income statement (LO4-1) The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,140; cost of goods sold, $1,320; selling expense, $155. general and administrative expense, $145; interest expense, $55; and gain on sale of investments, $95. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare a single-step income statement for 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) PACIFIC SCIENTIFIC CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains Total revenues and gains Expenses and losses: Total expenses and losses Income before income taxes Net income

Answer 1

PACIFIC SCIENTIFI C CORPORATION INCOMESTATEMENT FOR the Year Ended December31,2021 REVENUE & GAINS $inmillias a) Sales revenue 2140 (b) Gain on Sale of Invertmeut 95 Total REVENUE GAINS(A) 2235 EXPENSES & LOSSES (a) Cost of GOods Sold 1320 (b) Selling Expense O General& Admin strative exp. (d) Interest Expentes 155 145 55 Total Expences & Losses (B) 1615 INCOME BEFORE INCOMETAXES 56O TAX EXPnte [25%] ( 140 Net Income 420 NET INCOME-$420.