The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:
Account Title | Debits | Credits |
---|---|---|
Sales revenue | 2,350,000.00 | |
Interest revenue | 80,000.00 | |
Loss on sale of investments | 22,500.00 | |
Cost of goods sold | 1,200,300.00 | |
Loss from write-down of inventory due to obsolescence | 200,000.00 | |
Selling expenses | 300,000.00 | |
General and administrative expenses | 150,000.00 | |
Interest expense | 90,000.00 |
300,000 shares of common stock were outstanding throughout 2018.
Income tax expense has not yet been recorded. The income tax rate
is 40 percent.
Using the partial trial balance provided and considering the scenario, respond to the following prompts:
1.
General Lighting Corporation | ||
Income Statement (Single-step) | ||
For the Year Ended December 31, 2018 | ||
Revenues | ||
Sales revenue | 2,350,000 | |
Interest revenue | 80,000 | |
Total revenues | 2,430,000 | |
Cost of goods sold | 1,200,300 | |
Selling expenses | 300,000 | |
General and administrative expenses | 150,000 | |
Interest expense | 90,000 | |
Loss on sale of investments | 22,500 | |
Loss from write-down of inventory due to obsolescence | 200,000 | |
Total expenses | -1,962,800 | |
Income before income tax | 467,200 | |
Income tax expense ( Profit before tax tax x Income tax rate) ( 467,200 x 40%) | -186,880 | |
Net Income | $280,320 | |
Per share of common stock: | ||
Earning per share ( Net Income / Number of common shares) ( 280,320/300,000) | $0.93 |
2.
General Lighting Corporation | ||
Income Statement (Multi-step) | ||
For the Year Ended December 31, 2018 | ||
Revenues | ||
Sales revenue | 2,350,000 | |
Cost of goods sold | -1,200,300 | |
Gross profit | 1,149,700 | |
Operating expenses: | ||
Selling expenses | -300,000 | |
General and administrative expenses | -150,000 | |
Total Operating expenses | -450,000 | |
Income from operations | 699,700 | |
Other revenues and Gains: | ||
Interest revenue | 80,000 | |
Other expenses and Losses: | ||
Interest expense | -90,000 | |
Loss on sale of investments | -22,500 | |
Loss from write-down of inventory due to obsolescence | -200,000 | |
-232,500 | ||
Income before income tax | 467,200 | |
Income tax expense ( Profit before tax tax x Income tax rate) ( 467,200 x 40%) | -186,880 | |
Net Income | $280,320 | |
Per share of common stock: | ||
Earning per share ( Net Income / Number of common shares) ( 280,320/300,000) | $0.93 |
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The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: 2,758,8ee 88,000 Loss on sale of investments Cost of goods sold Loss from write-down of inventory due to obsolescence Selling expenses General and administrative expenses 26,500 1,270,ee6e 280 , еее 380,ee0 19e,0e0 87,800 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%. Required: 1. Prepare a single-step income statement for...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account TitleDebitsCreditsSales revenue2,500,000Interest revenue83,000Loss on sale of investments24,000Cost of goods sold1,220,000Loss on inventory write-down (obsolescence)230,000Selling expense330,000General and administrative expense165,000Interest expense82,000 There were 200,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required:Prepare a single-step income statement for 2021, including EPS disclosures.Prepare a multiple-step income statement for 2021, including EPS disclosures.
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,900,000 Interest revenue 91,000 Loss on sale of investments 28,000 Cost of goods sold 1,300,000 Loss on inventory write-down (obsolescence) 310,000 Selling expense 410,000 General and administrative expense 205,000 Interest expense 90,000 There were 200,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,950,000 92,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense 28,500 1,310,000 320,000 420,000 210,000 91,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: 1....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 3, 200,000 97,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense 31,000 1,360,000 370,000 470,000 235,000 96,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,500,000 Interest revenue 83,000 Loss on sale of investments 24,000 Cost of goods sold 1,220,000 Loss on inventory write-down (obsolescence) 230,000 Selling expense 330,000 General and administrative expense 165,000 Interest expense 82,000 There were 200,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,700,000 87,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense 26,000 1,260,000 270,000 370,000 185,000 86,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: 1....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,350,000 Interest revenue 80,000 Loss on sale of investments 22,500 Cost of goods sold 1,200,300 Loss on inventory write-down (obsolescence) 200,000 Selling expense 300,000 General and administrative expense 150,000 Interest expense 90,000 There were 160,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,600,000 85,000 Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense 25,000 1,240,000 250,000 350,000 175,000 84,000 There were 340,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. TH income tax rate is 25%. Required: 1....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits 2,950,000 92,000 points Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense 28,500 1,310,000 320,000 420,000 210,000 91,000 eBook Hint There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is...