he following incorrect income statement was prepared by
the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 |
|||||
Revenues and gains: | |||||
Sales revenue | $ | 650,000 | |||
Interest revenue | 38,000 | ||||
Gain on sale of investments | 85,000 | ||||
Total revenues and gains | 773,000 | ||||
Expenses and losses: | |||||
Cost of goods sold | $ | 355,000 | |||
Selling expense | 65,000 | ||||
Administrative expense | 85,000 | ||||
Interest expense | 22,000 | ||||
Restructuring costs | 61,000 | ||||
Income tax expense | 46,250 | ||||
Total expenses and losses | 634,250 | ||||
Net Income | $ | 138,750 | |||
Earnings per share | $ | 1.39 | |||
Required:
Prepare a multiple-step income statement for 2021 applying
generally accepted accounting principles. The income tax rate is
25%. (Amounts to be deducted should be indicated with a
minus sign. Round EPS answer to 2 decimal places.)
Multiple step income statement
Sales | 650000 | |
Cost of goods sold | 355000 | |
Gross profit | 295000 | |
Operating expense | ||
Selling expense | 65000 | |
Administrative expense | 85000 | |
Restructuring costs | 61000 | |
Total operating expense | 211000 | |
Operating income | 84000 | |
Other revenue and gains | ||
Interest revenue | 38000 | |
Gain on sale of investments | 85000 | |
Other expense and losses | ||
Interest expense | -22000 | |
101000 | ||
Income before tax | 185000 | |
Income tax | 46250 | |
Net income | 138750 | |
EPS | 1.39 | |
he following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION...
Exercise 4-5 (Algo) Income statement presentation (L04-1, 4-5) The following incorrect income statement was prepared by the accountant of the Axel Corporation: $650,000 38,000 85,000 773,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $355,000 Selling expense 65,000 Administrative expense 85,000 Interest expense 22,000 Restructuring costs 61,000 Income tax expense 46,250 Total expenses and...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 720,000 Interest revenue 45,000 Gain on sale of investments 92,000 Total revenues and gains 857,000 Expenses and losses: Cost of goods sold $ 390,000 Selling expense 72,000 Administrative expense 92,000 Interest expense 29,000 Restructuring costs 68,000 Income tax expense 51,500 Total expenses and losses 702,500 Net Income $ 154,500...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATIONIncome StatementFor the Year Ended December 31, 2021Revenues and gains:Sales revenue$700,000Interest revenue43,000Gain on sale of investments90,000Total revenues and gains833,000Expenses and losses:Cost of goods sold$380,000Selling expense70,000Administrative expense90,000Interest expense27,000Restructuring costs66,000Income tax expense50,000Total expenses and losses683,000Net Income$150,000Earnings per share$1.50 Required:Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 620,000 Interest revenue 35,000 Gain on sale of investments 82,000 Total revenues and gains 737,000 Expenses and losses: Cost of goods sold $ 340,000 Selling expense 62,000 Administrative expense 82,000 Interest expense 19,000 Restructuring costs 58,000 Income tax expense 44,000 Total expenses and losses 605,000 Net Income $ 132,000...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: $610,000 34,000 81,000 725,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $335,000 Selling expense 61,000 Administrative expense 81,000 Interest expense 18,000 Restructuring costs 57,000 Income tax expense 43,250 Total expenses and losses Net Income 595,250 $129,750 $ 1.30 Earnings...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 680,000 Interest revenue 41,000 Gain on sale of investments 88,000 Total revenues and gains 809,000 Expenses and losses: Cost of goods sold $ 370,000 Selling expense 68,000 Administrative expense 88,000 Interest expense 25,000 Restructuring costs 64,000 Income tax expense 48,500 Total expenses and losses 663,500 Net Income $ 145,500...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: $720,000 45,000 92,000 857,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $390,000 Selling expense 72,000 Administrative expense 92,000 Interest expense 29,000 Restructuring costs Income tax expense 51,500 Total expenses and losses Net Income 68,000 702,500 $154,500 $ 1.55 Earnings...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: $720,000 45,000 92,000 857,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $390,000 Selling expense 72,000 Administrative expense 92,000 Interest expense 29,000 Restructuring costs 68,000 Income tax expense 51,500 Total expenses and losses Net Income Earnings per share 702,500 $154,500...
The following incorrect income statement was prepared by the accountant of t AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $660,000 Interest revenue 39,000 Gain on sale of investments 86,000 Total revenues and gains 785,000 Expenses and losses: Cost of goods sold $360,000 Selling expense 66,000 Administrative expense 86,000 Interest expense 23,000 Restructuring costs Income tax expense 47,000 Total expenses and losses 644,000 Net Income $141,000 Earnings per share 62,000 Required: Prenare...
The following incorrect Income statement was prepared by the accountant of the Axel Corporation: $592,000 32,000 86,000 710,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2018 Revenues and gains: Sales Interest and dividends Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $325,000 Selling expenses 67,000 Administrative expenses 87,000 Interest 26,000 Restructuring costs 55,000 Income taxes 60,000 Total expenses and losses Net Income 620,000 $ 90,000 Earnings per share $...