a. Single-Step Income Statement for the year ended 31st December, 2020
Particulars | Amount |
Revenues and Gains | |
Sales Revenue, net | $9,50,000 |
Gain from recovery of Expropriation loss | $80,000 |
Rent revenue | $18,000 |
Gain on sale of Investment | $8,000 |
Investment revenue | $7,000 |
Total Revenue and Gains | $10,63,000 |
Expenses and Losses | |
Cost of Goods Sold | $5,50,000 |
Selling Expenses | $1,40,000 |
General and Administrative Expenses | $92,300 |
Casualty Loss | $30,000 |
Depreciation Expenses | $25,000 |
Loss on sale of long term investments | $10,000 |
Interest Expense | $9,000 |
Total Expenses and Losses | $8,56,300 |
Income before Income taxes | $2,06,700 |
Income Tax Expense rate @ 25% ($206700 X 25%) | $51,675 |
Net Income ($2,06,700 - $51,675) | $1,55,025 |
Earnings Per Share ($1,55,025 / 40,000 shares) | $3.87 |
b. Multiple Step Income Statement for the year ended 31st December 2020
Particulars | Amount |
Sales Revenue, Net | $9,50,000 |
Less: Cost of Goods Sold | $5,50,000 |
Gross Profit | $4,00,000 |
Operating Expenses | |
Selling Expenses | $1,40,000 |
General and Administrative Expenses | $92,300 |
Depreciation Expenses | $25,000 |
Total Operating Expenses | $2,57,300 |
Operating Income ($4,00,000 - $2,57,300) | $1,42,700 |
Other Revenues and Gains: | |
Gain on Sale of Investments | $8,000 |
Investment Revenue | $7,000 |
Recovery from Prior Expropriation Loss | $80,000 |
Rent Revenue | $18,000 |
Total of Other Revenues and Gains | $1,13,000 |
Other Expenses and Losses: | |
Casualty Loss | $30,000 |
Loss on sale of long term Investments | $10,000 |
Interest Expenses | $9,000 |
Total of Other Expenses and Losses | $49,000 |
Income Before Income Taxes ($1,42,700 + $1,13,000 - $49,000) | $2,06,700 |
Income Tax Rate @ 25% ($2,06,700 X 25%) | $51,675 |
Net Income ($2,06,700 - $51,675) | $1,55,025 |
Earnings Per Share ($1,55,025 / 40,000 Shares) | $3.87 |
Preparing a Single-Step and a Multiple-Step Income Statement The following pretax information is taken from the...
Preparing a Single-Step and a Multiple-Step Income Statement The following selected items are taken from the adjusted trial balance of Amick Corp. at December 31, 2020. Sales revenue $950,000 Cost of goods sold 575,000 Dividends received on investment in stocks 6,500 Interest expense 4,200 Loss on sale of investments 48,000 Promotion expense 15,000 Shipping expense 25,000 Depreciation (50% selling, 50% general and administrative) 20,000 Salaries (general and administrative) 80,000 Other general and administrative expenses 23,000 Salaries (selling) 85,300 Interest revenue...
The following pretax amounts are taken from the adjusted trial balance of Avoca Auto Corp. at December 31, 2020, its annual year-end. Sales revenue $260,000 Cost of goods sold 110,000 Operating expenses 80,000 Gain on debt retirement 20,000 Interest expense 8,000 Loss from discontinued operations 50,000 Retained earnings balance, December 31, 2019 30,000 Dividends declared and paid 25,000 Unrealized holding gain on debt investment securities, net of tax 4,000 Common stock, weighted average shares outstanding 10,000 shares Required a. Prepare...
Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. The following incorrect income statement was prepared by the accountant of the Axel Corporation: $680,000 41,000 88,000 809,000 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 $370,000 Selling expense 68,000 Administrative expense 88,000 Interest expense 25,000...
7 Exercise 4-15 Preparing a multiple-step Income statement LO P4 Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. ats $ Gain on sale of equipment Office supplies expense Insurance expense Sales Office salaries expense Rent expense-selling space Sales staff wages $ 6,350 Depreciation expense-office copier 770 Sales discounts 1,240 Sales returns and allowances 215,000 TV advertising expense 31,500 Interest revenue 11, eee Cost of goods sold 23, eee Sales commission expense 680 15,700 4,000...
Exercise 4-15 Preparing a multi-step income statement LO P4 Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. $ Gain on sale of equipment office supplies expense Insurance expense Sales office salaries expense Rent expense-Selling space Sales staff wages $ 6,240 Depreciation expense-office copier 750 sales discounts 1,270 Sales returns and allowances 227.000 TV advertising expense 33.000 Interest revenue 11.400 cost of goods sold 23.800 Sales commission expense 560 15,700 4.000 3.800 91.000 13, 200...
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: 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...
Exercise 4-5 (Algo) Income statement presentation (LO4-1.4-5] The following incorrect income statement was prepared by the accountant of the Axel Corporation $660,000 86.000 705,000 AXEL CORPORATION Income Statement For the Year Ended Deceber 31, 2021 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses! Cost of good old $260.000 Balling expense 66.000 Administrative expense 86.000 Interest expense 23,000 Ratuting Costs 82.000 Income wax expense 49.000 Total exponer and loss 644.000...
please complete required 1 and 2 and explain work Exercise 4-2 (Algo) Income statement format; single step and multiple step [LO4-1, 4-5) The following is a partial trial balance for the Green Star Corporation as of December 31, 2021: Account Title Sales revenue Debits Credits 1,800,000 43,000 63,000 Interest revenue Gain on sale of investments Cost of goods sold Selling expenses General and administrative expenses Interest expense 820,000 225,000 88,000 53,000 143,000 ok Income tax expense int There were 100,000...
The following incorrect income statement was prepared by the accountant of the AXL Corporation: AXL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 600,000 Interest revenue 33,000 Gain on sale of investments 80,000 Total revenues and gains 713,000 Expenses and losses: Cost of goods sold $ 330,000 Selling expense 60,000 Administrative expense 80,000 Interest expense 17,000 Restructuring costs 56,000 Income tax expense 42,500 Total expenses and losses 585,500 Net Income $ 127,500...