Question

The following is a partial trial balance for the Green Star Corporation as of December 31, 2021:

Account Title	Debits	Credits
Sales revenue		1,350,000
Interest revenue		34,000
Gain on sale of investments		54,000
Cost of goods sold	730,000
Selling expenses	180,000
General and administrative expenses	79,000
Interest expense	44,000
Income tax expense	134,000

There were 100,000 shares of common stock outstanding throughout 2021.

Required:

1. Prepare a single-step income statement for 2021, including EPS disclosures.

2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

Prepare a single-step income statement for 2021, including EPS disclosures. (Round EPS answer to 2 decimal places.)

Prepare a multiple-step income statement for 2021, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

Answer 1

Answer
Single step Income statement			Multiple step Income statement
Particulars	Amount		Particulars	Amount
Revenue and gains:			Sales revenue	$13,50,000
Sales revenue	$13,50,000		Less: Cost of goods sold	$ -7,30,000
Interest revenue	$     34,000		Gross profit	$ 6,20,000
Gain on sale of investment	$     54,000		Operating expenses:
Total revenues and gains	$14,38,000		Selling expenses	$ 1,80,000
Expenses and losses:			General & administrative expenses	$     79,000
Cost of goods sold	$ 7,30,000		Total operating expenses	$ 2,59,000
Selling expenses	$ 1,80,000		Operating income	$ 3,61,000
General & administrative expenses	$     79,000		Other income:
Interest expense	$     44,000		Interest revenue	$     34,000
Total expenses and losses	$10,33,000		Gain on sale of investment	$     54,000
Income before income taxes	$ 4,05,000		Less: Interest expense	$    -44,000
Income tax expense	$ 1,34,000		Total other income	$     44,000
Net income	$ 2,71,000		Income before income taxes	$ 4,05,000
No of shares	1,00,000		Income tax expense	$ 1,34,000
Earning per share	$ 2.71		Net income	$ 2,71,000
			No of shares	1,00,000
			Earning per share	$ 2.71