Question

Casting Crew Inc. provided the following information for the year 2015.

Retained earnings, January 1, 2015                                                                           £ 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

Gain on sale of investments                                                                                            62,700

Loss on discontinued operations                                                                                     75,000

Rent revenue                                                                                                                    40,000

Unrealized holding gain on non-trading equity securities                                              17,000

Income tax applicable to continuing operations                                                           187,000

Income tax benefit applicable to loss on discontinued operations                                 25,500

Income tax applicable to unrealized holding gain on non-trading equity securities         2,000

Weighted-average shares outstanding                                                                          100,000

Instructions

Prepare (a) an income statement for 2015,

            (b) a retained earnings statement for 2015, and

(c) a statement of comprehensive income using the two statement format.

Answer 1

Casting Crew Inc. Income Statement for 2015 Kavia 2 61ain . Sales / по 100 Rent Revenue 140,000 brain on sale of Investment 162,700 - Total Revenue & Grain. (A) 2002700 Expenses i Cost of Goods sold 850,000 Addministrative Expense. 240,000 Selling Expenses 1300,000 Total Expenes (B) 13,90,000 Income from Continued Operations. ( A-B) 1612700 e Loss from Dis continued Operation 75000) Income from Extraordinary Item len sealized holding gain on non toadong guily 14000 Net Income before Tan. 554700 Income Tax, (187000 + 2000 - 25.300 1 7163500) Net Income After Tan 399200 Weighted Average shares outstanding 100 000 e Earning pes share. 13.91

Casting Crew Inc. Retained Earning statement for 2018 Retained Earnings, January 1, 2015 1600, 800 Add: Net Income for 2015 391200 Tg 91 200 less! Cash Dividend Declared. (80,000 Retained Earnings as on December 31, g 11,200 2015-

Casting Crew Ine. A statement of comprehensive Income using the two statement format. for 2015 19,00,000 •Cost of Goods sold .850,000 Gross Profit 10,30,000 Operating expenses Administrative Expense 240,000 Selling Expeme 300,000 ( 540,000 Income from Continuing Operation T 510,000 Before income Taxe Income Tax 1067000) 1 Income from Continuing Operation 323000 Dis continued Operation hoss from Discontinued Operation T173000) Income Tax Benefit 25,500 (49.500) 1.17ouo (2000.) 150VO Entra ordinary item Un realizing holding gain on non-trading equity securitis. Income Tax othes Comprehensive Income Rent Revenue Gain on sale of Investment Comprehensive Income 140,000 62 700 102700 | 391,200