Question

Counting Crows Inc. provided the following information for the year 2020.

Retained earnings, January 1, 2020		$	600,000
Administrative expenses			240,000
Selling expenses			300,000
Sales revenue			1,900,000
Cash dividends declared			80,000
Cost of goods sold			850,000
Loss on discontinued operations			110,000
Rent revenue			102,700
Unrealized holding gain on available-for-sale debt securities			17,000
Income tax applicable to continuing operations			187,000
Income tax benefit applicable to loss on discontinued operations			60,500
Income tax applicable to unrealized holding gain on available-for-sale debt securities			2,000

Prepare a single-step income statement for 2020. Shares outstanding during 2020 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.)

Question 3 of 4 0.19/1 Prepare a single-step income statement for 2020. Shares outstanding during 2020 were 100,000. (Round earnings per share to 2 decimal places, e.g. $1.48.) COUNTING CROWS, INC. Income Statement For the Year Ended December 31, 2020 Revenues Sales Revenue Rent Revenue Total Revenues Expenses Cost of Goods Sold Selling Expenses Administrative Expenses 2 Income Tax Expense 11 Total Expenses 15 Income From Continuing Operations Loss on Discontinued Operations, net of tax Loss on Discontinued Operations Add Net Income /(Loss) Income From Continuing Operations Before Income Tax Income From Continuing Operations Before Income Tax Loss on Discontinued Operations, net of tax $ Net Income /(Loss) Earnings Per Share $

Answer 1

Answer
Single Step Income Statement
	Amount in $
Sales revenue	1900000
Add: Rent Revenue	102700
Total Revenue	2002700
Less: Expenses:
Cost of goods sold	850000
Administrative expenses	240000
Selling expenses	300000
Income Tax applicable to Continuing operations	187000
Total Expense	1577000
Income from Continuing Operations	425700
Discontinued Operations:
Less: Loss of discontinued operations (net of tax benefit )	49500
(110000 - 60500 )
Net Income	376200
Earnings per share:
Income from Continuing Operations	$          4.26	(425,700 / 100,000 )
Loss of discontinued operations (net of tax benefit )	-$          0.50	(-49,500 / 100,000 )
Net Income	$          3.76	(376,200 / 100,000 )