Question

The following information was taken from the records of Blue Spruce Inc. for the year 2020: Gain from expropriation $265,000 Cash dividends declared $240,000 Loss from operation of discontinued Rochelle Division 251,000 Retained earnings, January 1, 2020 1,900,000 Administrative expenses 760,000 Cost of goods sold 2,620,000 Rent revenue 170,000 Selling expenses 950,000 Loss from flood damage 210,000 Sales revenue 5,700,000 The following additional information was also available: income tax applicable to income from continuing operations, $465,000; income tax recovery applicable to loss from operation of discontinued Rochelle Division, $51,000. The company has elected to adopt ASPE. A) Prepare a single-step income statement for 2020, showing expenses by function. B)Prepare a combined single-step income and retained earnings statement. (List items that increase retained earnings first.)

Answer 1

TE PRO ) Ars Single Step Income Statement Revenue & Gain : Sales Rerenul 57 00000 Rent Recived 170000 265000 train from Expropriation (1) 6135000 Expenses & Losses : Cost of hood sold 2620000 Administrative Stenses 760000 950000 Selling Extende Less Jsom Thematian (discontiw satis) - 251000 Less from flood damages In come tox from operation 465000 Income to Becovery 51000 B1 5307000 Net Tron (A - B) 8 28000 910000 2 て

BA Combined single-Step Income Statement :- Revenul & hains & Sales Rerenul Rent Recived hon hem 5700000 17000 o 265000 6135000 Expenses & Losses :- Cost of good sold - 1 Administrative Expenses selling Expenses Loss Iron operation Less from flood damages Income tox from operation Income tox recovery BA (A-B) to add Retend Futning (ap) = Less :- Retend Earning (al Net Income 2620000 760000 950000 251000 210000 46500 51000 5307000 Income 170ooo 0 998000 2