At the beginning of 2016, Zipper Company had the shareholders’ equity as shown below:
Common stock $5 par $35,000
Additional Paid in Capital $49,000
Retained Earnings $63,000
During 2018, the following events and transactions occurred.
Required: a) Prepare an income statement which includes net income and comprehensive income (in other words, the comprehensive income statement), but you can ignore earnings per share. b) Describe the alternative formats you could have used for this statement.
Zipper Company | ||
Statement of Comprehensive Income | ||
For the year ending 2018 | ||
Particular | $ | Amount($) |
Sales | 108,000 | |
Cost of goods sold | 62,000 | |
Gross profit | 46,000 | |
Operating expenses | 12,000 | |
Income from continuing operations before income taxes | 34,000 | |
Income taxes(34,000 X 21%) | 7,140 | |
Income from continuing operations/ Net income | 26,860 | |
Other Comprehensive income adjustments from certain investments | 10,000 | |
Comprehensive income | 36,860 |
Alternative formats that could be used for this statement are:
At the beginning of 2016, Zipper Company had the shareholders’ equity as shown below: Common stock...
At the beginning of 2016, Zipper Company had the shareholders’ equity as shown below: Common stock $5 par $35,000 Additional Paid in Capital $49,000 Retained Earnings $63,000 During 2018, the following events and transactions occurred. Zipper had sales revenue of $108,000. It incurred Cost of Goods Sold of $62,000 and Operating Expenses of $12,000. Zipper issued 1,000 shares of its $5 par common stock for $14 per share at the beginning of the year and the same number of shares...
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