Question

In: Accounting

The following is a partial trial balance for General Lighting Corporation as of December 31, 2016:...

The following is a partial trial balance for General Lighting Corporation as of December 31, 2016:
  Account Title Debits Credits
  Sales revenue 3,200,000
  Interest revenue 97,000
  Loss on sale of investments 31,000
  Cost of goods sold 1,360,000
  Loss from write-down of inventory due to obsolescence 370,000
  Selling expenses 470,000
  General and administrative expenses 235,000
  Interest expense 96,000

300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%.
Required:
1.

Prepare a single-step income statement for 2016, including EPS disclosures. (Round EPS answers to 2 decimal places.)

      


2.

Prepare a multiple-step income statement for 2016, including EPS disclosures. (Round EPS answers to 2 decimal places.)

      

Solutions

Expert Solution

1.SINGLE-STEP INCOME STATEMENT FOR THE YEAR ENDED 2016

GENERAL LIGHTING CORPORATION

Income Statement For the Year Ended December 31, 2016

Revenues and gains:

Sales revenue $ 32,00,000

Interest revenue $ 97,000

Total revenues and gains $ 32,97,000

Expenses and losses:

Cost of goods sold                                      $ 13,60,000

Loss from write-down of         - $ 3,70,000

inventory due to obsolescence                   

Loss on sale of investments $ 31,000

Selling expenses $ 4,70,000

General and administrative expenses         $ 2,35,000

Interest expense $ 96,000

Income tax expense ($735000*.40) $ 2,94,000

Total expenses and losses $ 28,56,000

Net income                                                 $ 4,41,000

Earnings per share (EPS)

Net income                                        $ 4,41,000

common stock outstanding               3,00,000

EPS                                                   $ 1.47/share

2.MULTI-STEP INCOME STATEMENT FOR THE YEAR ENDED 2016

GENERAL LIGHTING CORPORATION

Income Statement For the Year Ended December 31, 2016

Sales revenue                                                       $ 32,00,000

Cost of goods sold                                                         $ 13,60,000

Gross profit                                                                   $ 18,40,000

Operating expenses

Selling expenses $ 4,70,000

General and administrative expenses $ 2,35,000

Total Operating Expenses $ 7,05,000

Operating Income $ 11,35,000

Other income (expense):

Loss from write-down of         - ($ 3,70,000)

inventory due to obsolescence                   

Loss on sale of investments              ($ 31,000)

Interest expense                                ($ 96,000)

Interest revenue                                 $ 97,000    

Total other income, net $ 4,00,000

Income before income taxes $ 7,35,000

Income tax expense $ 2,94,000

Net income $ 4,41,000

Earnings per share (EPS)

Net income                                        $ 4,41,000

common stock outstanding               3,00,000

EPS                                                   $ 1.47/share

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following is a partial trial balance for General Lighting Corporation as of December 31, 2016:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2016:   Account Title Debits Credits   Sales revenue 2,550,000   Interest revenue 84,000   Loss on sale of investments 24,500   Cost of goods sold 1,230,000   Loss from write-down of inventory due to obsolescence 240,000   Selling expenses 340,000   General and administrative expenses 170,000   Interest expense 83,000 300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%....
he following is a partial trial balance for General Lighting Corporation as of December 31, 2016:...
he following is a partial trial balance for General Lighting Corporation as of December 31, 2016:   Account Title Debits Credits   Sales revenue 2,350,000   Interest revenue 80,000   Loss on sale of investments 22,500       Cost of goods sold 1,200,300       Loss from write-down of inventory due to obsolescence 200,000       Selling expenses 300,000       General and administrative expenses 150,000       Interest expense 90,000     300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded....
he following is a partial trial balance for General Lighting Corporation as of December 31, 2016:...
he following is a partial trial balance for General Lighting Corporation as of December 31, 2016:   Account Title Debits Credits   Sales revenue 2,550,000   Interest revenue 84,000   Loss on sale of investments 24,500   Cost of goods sold 1,230,000   Loss from write-down of inventory due to obsolescence 240,000   Selling expenses 340,000   General and administrative expenses 170,000   Interest expense 83,000 300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 3,100,000 Interest revenue 95,000 Loss on sale of investments 30,000 Cost of goods sold 1,340,000 Loss on inventory write-down (obsolescence) 350,000 Selling expense 450,000 General and administrative expense 225,000 Interest expense 94,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Debits Credits Sales revenue 3,300,000 Interest revenue 99,000 Loss on sale of investments 32,000 Cost of goods sold 1,380,000 Loss from write-down of inventory due to obsolescence 390,000 Selling expenses 490,000 General and administrative expenses 245,000 Interest expense 98,000 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: There were 160,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.   Required:1. Prepare a single-step income statement for 2021, including EPS disclosures. Be sure to include appropriate headings and subtotal titles. An example of a single-step income statement can be found in Illustration 4–3 of this chapter. 2. Prepare a multiple-step income statement for...
2. The following is a partial trial balance for General Lighting Corporation as of December 31,...
2. The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,750,000 Interest revenue 88,000 Loss on sale of investments 26,500 Cost of goods sold 1,270,000 Loss on inventory write-down (obsolescence) 280,000 Selling expense 380,000 General and administrative expense 190,000 Interest expense 87,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Debits Credits Sales revenue 2,500,000 Interest revenue 83,000 Loss on sale of investments 24,000 Cost of goods sold 1,220,000 Loss from write-down of inventory due to obsolescence 230,000 Selling expenses 330,000 General and administrative expenses 165,000 Interest expense 82,000 200,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Debits Credits Sales revenue 2,500,000 Interest revenue 83,000 Loss on sale of investments 24,000 Cost of goods sold 1,220,000 Loss from write-down of inventory due to obsolescence 230,000 Selling expenses 330,000 General and administrative expenses 165,000 Interest expense 82,000 200,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%....
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:...
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Debits Credits Sales revenue 2,650,000 Interest revenue 86,000 Loss on sale of investments 25,500 Cost of goods sold 1,250,000 Loss from write-down of inventory due to obsolescence 260,000 Selling expenses 360,000 General and administrative expenses 180,000 Interest expense 85,000 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT