Question

The following information is taken from the accounting records of Cullumber Corporation, a Canad ended December 31, 2020. Accounts receivable Retained earnings, January 1, 2020 Loss on operation of discontinued operations (before tax) Sales revenue Cost of goods sold Selling expenses Cash Common shares (22,000 common shares outstanding) Dividend revenue $93,500 270.000 95,000 1,246,500 N 728,500 128,500 57.000 220,000 18,300 124.000 Inventory Unearned revenue 3,500 370,000 20,000 Land Interest expense Administrative expenses 165,000 17 I o search O

Answer 1

Solution:

Cullumber Corporation Multi-Step Income Statement For the Year Ended December 31, 2020 $12,46,500 $7,28,500 $5,18,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expense: Selling Expenses Administrative Expenses Depreciation Expense Total Operating Expenses Operating Income Other Revenues & Gains: Dividend Revenue $1,28,500 $1,65,000 $51,000 $3,44,500 $1,73,500 $18,300 $20,000 $12,000 Other Expenses & Losses: Interest Expense Loss on Disposal of equipment Income Before Income Tax Less: Income Tax Expense @ 25% Income from Continuing Operations Discontinued Operations: Loss on operation of Discontinued Operations ($95,000 * 0.75) Gain on Disposal of discontinued operations ($153,000 * 0.75) $32,000 $1,59,800 $39,950 $1,19,850 -$71,250 $1,14,750 $43,500 $1,63,350 Net Income