Question

The following is a partial trial balance for the Green Star Corporation as of December 31, 2021:

Account Title	Debits	Credits
Sales revenue		2,150,000
Interest revenue		50,000
Gain on sale of investments		70,000
Cost of goods sold	890,000
Selling expenses	260,000
General and administrative expenses	95,000
Interest expense	60,000
Income tax expense	150,000

There were 100,000 shares of common stock outstanding throughout 2021.

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.

Prepare a single-step income statement for 2021, including EPS disclosures. (Round EPS answer to 2 decimal places.)

	GREEN STAR 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 Earnings per share

Prepare a multiple-step income statement for 2021, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

	GREEN STAR CORPORATION Income Statement For the Year Ended December 31, 2021 Gross profit Operating expenses: Total operating expenses Operating income Other income (expense): Total other income, net Income before income taxes Net income Earnings per share

Answer 1

1). GREEN STAR CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains : Sales Revenue $2,150,000 Interest Revenue $ 50,000 Gain on Sale of Investments $ 70,000 Total revenues and gains $2,270,000 Expenses and losses: Cost of goods sold $890,000 Selling Expenses $ 260,000 General and administrative expenses $ 95,000 Interest Expenses $ 60,000 Total Expenses and Losses $ 1,305,000 Income Before Income Taxes $ 965,000 Less: Income Taxe Expenses $ 150,000 Net Income $ 815,000 Earnings per share $ 8.15 Earnings per share = Net Income / No of Equity shares Outstanding = $815,000/100000 = $8.15

GREEN STAR CORPORATION Income Statement For the Year Ended December 31, 2021 Sales Revenue $ 2,150,000 Cost of goods sold $ 890,000 Gross Profit $1,260,000 Operating Expenses Selling Expenses $ 260,000 General and administrative expenses $ 95,000 Total Operating expenses $ 355,000 Income from Operations $ 905,000 Other Income (Expenses) Interest Revenue $ 50,000 Gain on sale of Investments $ 70,000 Interest Expenses $ (60,000) Total Other Income, net $ 60,000 Income Before Income Taxes $ 965,000 Income Tax Expenses $ 150,000 Net Income $ 815,000 Earnings per Share $ 8.15 Earnings per share = Net Income / No of Equity shares Outstanding = $815,000/100000 = $8.15