Question

Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income

On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance:

Loss from fire (pretax)	$8,000		General and administrative expenses	$17,000
Interest revenue	2,000		Sales	180,000
Selling expenses	12,000		Unrealized decrease in fair value of
Cost of goods sold	95,000		available-for-sale securities	1,800
Loss on sale of equipment (pretax)	2,000

Additional data:

1. Seven thousand shares of common stock have been outstanding the entire year.
2. The income tax rate is 30% on all items of income.

Required:

1. Prepare a 2019 multiple-step income statement. Round earnings per share to two decimal places.

OPGENORTH COMPANY
Income Statement
For Year Ended December 31, 2019
		$fill in the blank e32268fe906900_2
Operating expenses
Other items
Components of Income
		fill in the blank e32268fe9069060_29

2. Prepare a 2019 single-step income statement. Round earnings per share to two decimal places.

OPGENORTH COMPANY
Income Statement
For Year Ended December 31, 2019
Revenues
Total revenues
	$fill in the blank 72a6d4064025f85_7
	fill in the blank 72a6d4064025f85_9
	fill in the blank 72a6d4064025f85_11
	fill in the blank 72a6d4064025f85_13
	fill in the blank 72a6d4064025f85_15
	fill in the blank 72a6d4064025f85_17
Total expenses
Components of Income		EPS
		fill in the blank 72a6d4064025f85_22

3. Prepare a 2019 statement of comprehensive income.

OPGENORTH COMPANY
Statement of Comprehensive Income
For Year Ended December 31, 2019
	$fill in the blank 1d91bd009fbc061_2
Other comprehensive loss
	fill in the blank 1d91bd009fbc061_4
	$fill in the blank 1d91bd009fbc061_6

Answer 1

ANSWER:

Required: 2019 multiple-step income statement.

Particulars	Amount	Amount
Sales		180,000
Less: Cost of Goods Sold		(95,000)
Gross profit		85,000
Less: Operating expenses
Selling expense	12,000
General and administrative expenses	17,000
Total operating expense		(29,000)
Operating income		56,000
Other items
Interest revenue	2,000
Loss on sale of equipment (pretax)	(2,000)
Loss from fire	(8,000)	(8,000)
Income before tax		48,000
Less: Income tax (30% of 48,000)		(14,400)
Net Income		33,600
Components of Income		EPS
EPS (33,600 / 7,000)		4.8

Required 2) 2019 single-step income statement.

Particulars	Amount	Amount
Revenues
Sales	180,000
Interest revenue	2,000
Total revenues		182,000
Less: Expenses + Losses
Cost of goods sold	95,000
Selling expense	12,000
General and administrative expense	17,000
Loss from fire	8,000
Loss on sale of equipment (pretax)	2000
Income tax	14,400
Total expenses		(148,400)
Net income		33,600
Components of Income		EPS
EPS (33,600 / 7,000)		4.8

Required 3) 2019 statement of comprehensive income

Particulars	Amount
Net Income	33,600
Other comprehensive loss
Unrealized decrease in fair value of available for sale securities	(1,800)
Comprehensive income	31,800