Question

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	2,500		Sales	160,000
Selling expenses	14,000		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
Sales		$
Cost of goods sold		$
Gross profit		$
Operating expenses
Selling expenses	$
General and administrative expenses	$
Total operating expenses		$
Operating income		$
Other items
Interest revenue	$
Interest expense	$
Loss on sale of equipment	$	$
Income before income tax		$
Income tax expense		$
Net income		$
Components of Income		EPS
??????		$

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		$
Expenses
????	$
????	$
???	$
????	$
????	$
??????	$
Total expenses		$
???????		$
Components of Income		EPS
????????		$

3. Prepare a 2019 statement of comprehensive income.

OPGENORTH COMPANY
Statement of Comprehensive Income
For Year Ended December 31, 2019
????????	$
Other comprehensive loss
??????	$
??????	$

Answer 1

Single Step Income Statement -Opgenorth Company
Particulars	Amount ($)	Amount ($)
Revenues:
Sales	$160,000.00
Interest Revenue	$2,500.00
Total Revenue		$162,500.00
Less Expenses:
Cost of goods sold	$95,000.00
Administrative expenses	$17,000.00
Selling expenses	$14,000.00
Loss onSale of Equipment	$2,000.00
Total Expense		$128,000.00
Income before Tax		$34,500.00
Less: Tax		$10,350.00
Income after tax before Extraordinary Item		$24,150.00
Less: Extraordinary Loss (8000-2400)		$5,600.00
Net Income		$18,550.00

Multiple Income Statement
Particulars	Amount ($)	Amount ($)
Sales		$160,000.00
Less: Cost of goods sold		$95,000.00
Gross Profit		$65,000.00
Less: Operating Expenses
Administrative expenses	$17,000.00
Selling expenses	$14,000.00
Total Operating expenses		$31,000.00
Operating Income (a)		$34,000.00
Non Operating Income/ (Loss):
Loss on Sale of Equipment	-$2,000.00
Interest Revenue	$2,500.00
Total non operating income (b)		$500.00
Income before tax (c=a+b)		$34,500.00
Less: Tax expense		$10,350.00
Income Before Extraordinary Items		$24,150.00
Less: Extraordinary Loss (8000-2400)		-$5,600.00
Net Income		$18,550.00
EPS
Income Before Extraordinary Item (24150/7000)	$3.45
Extraordinary Loss (-$5600/7000)	-$0.80
Net Income ( 18550/7000)	$2.65

Statement of Comprehensive Income
Particulars	Amount ($)
Net Income	$18,550.00
Less: Unrealized decrease in fair value of available for sale securities	-$1,800.00
Comprehensive Income	$16,750.00