In: Accounting
The following balances were taken from the books of Oriole Corp.
on December 31, 2020.
Interest revenue |
$87,950 |
Accumulated depreciation—equipment |
$41,950 | |||
---|---|---|---|---|---|---|
Cash |
52,950 |
Accumulated depreciation—buildings |
29,950 | |||
Sales revenue |
1,381,950 |
Notes receivable |
156,950 | |||
Accounts receivable |
151,950 |
Selling expenses |
195,950 | |||
Prepaid insurance |
21,950 |
Accounts payable |
171,950 | |||
Sales returns and allowances |
151,950 |
Bonds payable |
101,950 | |||
Allowance for doubtful accounts |
8,950 |
Administrative and general expenses |
98,950 | |||
Sales discounts |
46,950 |
Accrued liabilities |
33,950 | |||
Land |
101,950 |
Interest expense |
61,950 | |||
Equipment |
201,950 |
Notes payable |
101,950 | |||
Buildings |
141,950 |
Loss from earthquake damage |
151,950 | |||
Cost of goods sold |
622,950 |
Common stock |
501,950 | |||
Retained earnings |
22,950 |
Assume the total effective tax rate on all items is 20%.
Prepare a multiple-step income statement; 100,000 shares of common
stock were outstanding during the year. (Round earnings
per share to 2 decimal places, e.g. 1.48.)
Oriole Corp | ||
Multiple-Step Income Statement | ||
Particulars | Amount | Amount |
Sales Revenue | $1,381,950.00 | |
sales return and allowances | -$151,950.00 | |
Sales discount | -$46,950.00 | |
Net Sales | $1,183,050.00 | |
Cost of goods sold | -$622,950.00 | |
Gross profit | $560,100.00 | |
Operating Expenses | ||
Selling expenses | $195,950.00 | |
Administrative and General expenses | $98,950.00 | |
Total operating expenses | -$294,900.00 | |
Income from operation | $265,200.00 | |
Non-operating Income and expenses | ||
Interest Revenue | $87,950.00 | |
interest expense | -$61,950.00 | |
Loss from earthquake damage | -$151,950.00 | |
Non-operating income and expenses | -$125,950.00 | |
Income Before Tax | $139,250.00 | |
Less: Tax @20% | -$27,850.00 | |
Net Income | $111,400.00 | |
Number of shares outstanding | 100000 | |
Earning per share (Net income / Number of shares outstanding) (111400/100000) |
$1.11 |