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Please write a multiple step income statement using the following accounts as needed. The tax rate...

Please write a multiple step income statement using the following accounts as needed. The tax rate is 30%.

Common stock                                                                                        1,000,000

Retained Earnings                                                                                   3,200,000

Dividends                                                                                                   500,000

Interest Income                                                                                       250,000

Interest Expense                                                                                     100,000

Dividend Income                                                                                     50,000

Gain on Disposal of Plant Assets                                                          100,500

Unrealizezd Gain on Trading Securities                                              65,000

Unrealized Gain on Available for sale securities                                 10,000

Cost of Goods Sold                                                                                 286,000

Selling Expenses                                                                                      140,000

Sales Salaries Expenses                                                                         34,000

Depreciation Expense                                                                            100,000

Amortization Expense                                                                            25,000

Loss on Assset Impairment                                                                   12,000

Loss on Discontinued Operations                                                        10,000

Sales                                                                                                          1,150,600

General Expense                                                                                     250,000

Sales Commission Expense                                                                   250,000

Solutions

Expert Solution

*unrealised Gain on trading securities and securities available for sale are recognised in other comprehensive income.

Note:I have assumed dividend of 500000 as dividend payable of previous year which is already recognised in income statement of previous year.hence considered.

If you are of assumption that dividend paid in current year,you need to deduct under other loss and expense head and after considering dividend expense,there will net loss of 221500.

**Generally dividend shall be distributed from profit after tax whether fully or partly depends on dividend payout ratio. Profit after tax shall be 194950 (278500-30%) and this the profit available for shareholders

jeff jeffy answered 1 year ago
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