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 | $ | 720,000 | |||
Interest revenue | 45,000 | ||||
Gain on sale of investments | 92,000 | ||||
Total revenues and gains | 857,000 | ||||
Expenses and losses: | |||||
Cost of goods sold | $ | 390,000 | |||
Selling expense | 72,000 | ||||
Administrative expense | 92,000 | ||||
Interest expense | 29,000 | ||||
Restructuring costs | 68,000 | ||||
Income tax expense | 51,500 | ||||
Total expenses and losses | 702,500 | ||||
Net Income | $ | 154,500 | |||
Earnings per share | $ | 1.55 | |||
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 decimal places.)
ANSWER:-
Preparation of the multiple-step income statement for 2021 applying generally accepted accounting principles.
Amounts in $ | Amounts in $ | |
Sales | 720,000 | |
Less: Cost of goods sold | -390,000 | |
Gross profit | 330,000 | |
Less: Operating expenses | ||
Selling expenses | -72,000 | |
Administrative expenses | -92,000 | |
Restructuring costs | -68,000 | -232,000 |
Income from operation | 98,000 | |
OTHER EXPENSES | ||
Interest expenses | -29,000 | |
OTHER REVENUE | ||
Interest | 45,000 | |
Gain on sale of investment | 92,000 | 108,000 |
Income before taxes | 206,000 | |
Less: Income tax @25% | -51,500 | |
Net income | 154,500 | |
Share outstanding | 99,677.42 | |
EPS | 1.55 |
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: $720,000 45,000 92,000 857,000 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 $390,000 Selling expense 72,000 Administrative expense 92,000 Interest expense 29,000 Restructuring costs Income tax expense 51,500 Total expenses and losses Net Income 68,000 702,500 $154,500 $ 1.55 Earnings...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: $720,000 45,000 92,000 857,000 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 $390,000 Selling expense 72,000 Administrative expense 92,000 Interest expense 29,000 Restructuring costs 68,000 Income tax expense 51,500 Total expenses and losses Net Income Earnings per share 702,500 $154,500...
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 $ 680,000 Interest revenue 41,000 Gain on sale of investments 88,000 Total revenues and gains 809,000 Expenses and losses: Cost of goods sold $ 370,000 Selling expense 68,000 Administrative expense 88,000 Interest expense 25,000 Restructuring costs 64,000 Income tax expense 48,500 Total expenses and losses 663,500 Net Income $ 145,500...
he 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 $ 650,000 Interest revenue 38,000 Gain on sale of investments 85,000 Total revenues and gains 773,000 Expenses and losses: Cost of goods sold $ 355,000 Selling expense 65,000 Administrative expense 85,000 Interest expense 22,000 Restructuring costs 61,000 Income tax expense 46,250 Total expenses and losses 634,250 Net Income $ 138,750...
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...
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 t AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $660,000 Interest revenue 39,000 Gain on sale of investments 86,000 Total revenues and gains 785,000 Expenses and losses: Cost of goods sold $360,000 Selling expense 66,000 Administrative expense 86,000 Interest expense 23,000 Restructuring costs Income tax expense 47,000 Total expenses and losses 644,000 Net Income $141,000 Earnings per share 62,000 Required: Prenare...
The following incorrect income statement was prepared by the accountant of the Axel Corporation: $610,000 34,000 81,000 725,000 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 $335,000 Selling expense 61,000 Administrative expense 81,000 Interest expense 18,000 Restructuring costs 57,000 Income tax expense 43,250 Total expenses and losses Net Income 595,250 $129,750 $ 1.30 Earnings...
2) 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 $ 780,000 Interest revenue 51,000 Gain on sale of investments 98,000 Total revenues and gains 929,000 Expenses and losses: Cost of goods sold $ 420,000 Selling expense 78,000 Administrative expense 98,000 Interest expense 35,000 Restructuring costs 74,000 Income tax expense 56,000 Total expenses and losses 761,000 Net Income $...
The following incorrect Income statement was prepared by the accountant of the Axel Corporation: $592,000 32,000 86,000 710,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2018 Revenues and gains: Sales Interest and dividends Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $325,000 Selling expenses 67,000 Administrative expenses 87,000 Interest 26,000 Restructuring costs 55,000 Income taxes 60,000 Total expenses and losses Net Income 620,000 $ 90,000 Earnings per share $...