Question

Income Statement Format
The following information from Tricon Company's operations is available:

Administrative expenses	$165,600
Cost of goods sold	1,113,600
Sales revenue	1,852,800
Selling expenses	208,800
Interest expense	16,800
Loss from operations of discontinued segment	144,000
Flood loss (considered unusual and infrequent)	60,000
Gain on disposal of discontinued segment	96,000
Income taxes:
Amount applicable to ordinary operations	139,200
Reduction applicable to loss from operations of discontinued segment	81,600
Amount applicable to gain on disposal of discontinued segment	38,400
Reduction applicable to flood loss	24,000

Required
a. Prepare a multiple-step income statement. (Disregard earnings per share amounts.)
b. Prepare a single-step income statement. (Disregard earnings per share amounts.)


a. Hint: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

TRICON COMPANY Income Statement For Year Ended
Sales Revenue		$Answer
Cost of Goods Sold		Answer
Gross Profit on Sales		Answer
Selling Expenses	$Answer
Administrative Expenses	Answer	Answer
Operating Income		Answer
Interest Expense		Answer
Income from Continuing Operations before Taxes		Answer
Income Tax Expense		Answer
Income from Continuing Operations		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer*
Gain on disposal of discontinued segment	Answer	Answer*
Income before Extraordinary Item		Answer
Extraordinary Item
Flood Loss		Answer*
Net Income		$Answer

b. Hint: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

TRICON COMPANY Income Statement For Year Ended
Sales Revenue		$Answer
Expenses
Cost of Goods Sold	$Answer
Selling Expenses	Answer
Administrative Expenses	Answer
Interest Expense	Answer
Income Tax Expense	Answer	Answer
Income from Continuing Operations		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer*
Gain on disposal of discontinued segment	Answer	Answer*
Income before Extraordinary Item		Answer
Extraordinary Item
Flood Loss		Answer*
Net Income		$Answer

Answer 1

a) Multiple step income statement is shown as follows:- (Amounts in $)

TRICON COMPANY Income Statement For Year Ended
Sales Revenue		$1,852,800
Cost of Goods Sold		1,113,600
Gross Profit on Sales		739,200
Selling Expenses	$208,800
Administrative Expenses	165,600	374,400
Operating Income		364,800
Interest Expense		16,800
Income from Continuing Operations before Taxes		348,000
Income Tax Expense		139,200
Income from Continuing Operations		208,800
Discontinued Operations
Loss from operations of discontinued segment (144,000-81,600)	-62,400*
Gain on disposal of discontinued segment (96,000-38,400)	57,600	-4,800*
Income before Extraordinary Item		204,000
Extraordinary Item
Flood Loss ($60,000 - $24,000)		-36,000*
Net Income		$168,000

b) Single step income statement is shown as follows:- (Amounts in $)

TRICON COMPANY Income Statement For Year Ended
Sales Revenue		$1,852,800
Expenses
Cost of Goods Sold	$1,113,600
Selling Expenses	208,800
Administrative Expenses	165,600
Interest Expense	16,800
Income Tax Expense	139,200	1,644,000
Income from Continuing Operations		208,800
Discontinued Operations
Loss from operations of discontinued segment (144,000-81,600)	-62,400*
Gain on disposal of discontinued segment (96,000-38,400)	57,600	-4,800*
Income before Extraordinary Item		204,000
Extraordinary Item
Flood Loss (60,000-24,000)		-36,000*
Net Income		$168,000