Question

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

Account Title	Debits	Credits
Sales revenue		1,550,000
Interest revenue		38,000
Gain on sale of investments		58,000
Cost of goods sold	770,000
Selling expenses	200,000
General and administrative expenses	83,000
Interest expense	48,000
Income tax expense	138,000

There were 110,000 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.

	GREEN STAR CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Total revenues and gains Expenses and losses: Total expenses and losses Income before income taxes Net income Earnings per share

nd EPS answer to 2 decimal places.)

	GREEN STAR CORPORATION Income Statement For the Year Ended December 31, 2021 Gross profit Operating expenses: Total operating expenses Operating income Other income (expense): Total other income, net Income before income taxes Net income Earnings per share

Answer 1

single step Income statement
GREEN STAR CORPORATION
Income Statement
For the Year Ended December 31, 2021
Revenues and gains:	Amount $	Amount $
Sales revenue		1550000
Interest revenue		38000
Gain on sale on investments		58000
Total revenue and gains (1550000+38000+58000)		1646000
Expenses and losses:
Cost of goods sold	770000
Selling expenses	200000
General and Admin expense	83000
Interest expense	48000
Total Expenses and losses (770000+200000+83000+48000)		1101000
Income before income taxes (1646000-1101000)		545000
Income tax expense		138000
Net Income (545000 - 138000)		407000
Earnings per share (407000/110000)		3.7

Multistep Income statement
GREEN STAR CORPORATION
Income Statement
For the Year Ended December 31, 2021
	Amount $	Amount $
Sales revenue		1550000
Cost of goods sold		770000
Gross Profit		780000
Operating expenses:
Selling expenses	200000
General and Admin expense	83000
Total Operating expense		283000
Operating Income		497000
Other income (expenses)
Interest revenue	38000
Gain on sale on investments	58000
Interest expense	-48000
Total other income, net		48000
Income before income taxes (497000+48000)		545000
Income tax expense		138000
Net Income (545000 - 138000)		407000
Earnings per share (407000/110000)		3.7