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 | 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%. |
| 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
| Single Step Income statement | ||
| For the year ended 31 december 2016 | ||
| Sales revenue | 2,550,000 | |
| Interest revenue | 84,000 | |
| Total revenue and gains | 2,634,000 | |
| Expenses and losses | ||
| Cost of goods sold | 1,230,000 | |
| Selling expenses | 340,000 | |
| General and administrative expenses | 170,000 | |
| Interest expense | 83000 | |
| Loss from write-down of inventory due to obsolescence | 240,000 | |
| Loss on sale of investments | 24,500 | |
| Total Expenses and losses | 2,087,500 | |
| Income before taxes | 546,500 | |
| Less: income tax (40%) | 218,600 | |
| net Income | 327,900 | |
| Earning per share | ||
| Net income (327900/300000) | 1.09 | |
| ans 2 | ||
| Multiple Step Income statement | ||
| For the year ended 31 december 2016 | ||
| Sales revenue | 2,550,000 | |
| Less: Cost of goods sold | 1,230,000 | |
| Gross Profit | 1,320,000 | |
| Operating expenses | ||
| Selling expenses | 340,000 | |
| General and administrative expenses | 170,000 | |
| Loss from write-down of inventory due to obsolescence | 240,000 | |
| Total Operating expenses | 750,000 | |
| Operating Income | 570,000 | |
| Other Income/(expense) | ||
| Interest expense | -83000 | |
| Interest revenue | 84,000 | |
| Loss on sale of investments | -24,500 | |
| Total Other Income/(expense) | -23,500 | |
| Income before taxes | 546,500 | |
| Less: income tax (40%) | 218,600 | |
| net Income | 327,900 | |
| Earning per share | ||
| Net income (327900/300000) | 1.09 | |
| If any doubt please comment |
ekkarill92 answered 2 years agoRelated 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
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%....
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
ADVERTISEMENT
Latest Questions
- Explain two theories or frameworks for understanding how Western Europe emerged out of 1,000 years of...
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
ADVERTISEMENT