Question

The following information is taken from the accounting records of Oriole Corporation, a Canadian public company, for the year ended December 31, 2018.

Accounts receivable		$87,000
Retained earnings, January 1, 2018		265,000
Loss on operation of discontinued operations (before tax)		106,000
Sales revenue		1,211,000
Cost of goods sold		740,000
Selling expenses		127,000
Cash		63,000
Common shares (22,000 common shares outstanding)		220,000
Dividend revenue		17,800
Inventory		130,000
Unearned service revenue		4,500
Land		371,000
Interest expense		18,100
Administrative expenses		164,000
Notes payable (maturity 2023)		199,000
Accounts payable		60,300
Gain on sale of discontinued operations (before tax)		149,000
Depreciation expense		49,700
Loss on sale of equipment (before tax)		11,800

Prepare a multiple-step income statement in good form for Oriole Corporation (earnings per share information is not required).

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

AwN Answer Oriole Corporation Income Statement For the Year ended december 31,2018 5 Sales Revenue $ 6 Cost of goods sold $ 7 Gross Profit $ 1,211,000 740,000 471,000 9 10 Operating expenses in ovnences Selling expenses adminstrative expenses Depreciation expense $ $ $ 127,000 164,000 49,700 12 $ $ 340,700 130,300 14 Operating income 16 Non operating expenses/ (income) 17 Interest expense 18 Loss on sale of equipment 19 Dividend Revenue 18,100 $ 11,800 (17,800) $ 12,100 $ 118,200 21 Income from continuing Operations 22 23 Income/ (loss) from Discountinued Operations 24 Loss on discountinued operations 25 Gain on sale of discountinued operations 26 27 Net Income 28 $ $ (106,000) 149,000 $ 43,000 $ 161,200