At the beginning of 2016, JR Company’s shareholders’ equity was as follows:
Common stock, $5 par ......... $35,000
Additional paid-in capital ....... 49,000
Retained earnings .......... 63,000
During 2016, the following events and transactions occurred:
1. JR recognized sales revenues of $108,000. It incurred cost of goods sold of $62,000 and operating expenses of $12,000.
2. JR issued 1,000 shares of its $5 par common stock for $14 per share.
3. JR invested $30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of $35,000.
4. JR paid dividends of $6,000. The income tax rate on all items of income is 30%.
1. Prepare a 2016 income statement for JR which includes net income and comprehensive income (ignore earnings per share).
(a) A 2016 income statement (ignore earnings per share) and
(b) A separate 2016 statement of comprehensive income.