Carter Huntt, accountant for Southern Harvest Foods, Inc., was injured in an auto accident. While he was recuperating, another, inexperienced employee prepared the following income statement for the fiscal year ended June 30, 2014:

The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and some accounts do not belong on the income statement at all. Also, ­income tax (30%) has not been applied to all appropriate figures. Southern Harvest Foods issued 38,000 shares of common stock back in 2004 and held 8,000 shares as treasury stock all during the fiscal year 2014.

Requirement
1. Using the End-of-Chapter Summary Problem (pages 637€“638) as an example, prepare a corrected Income Statement for Southern Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Use the single-step format, which lists all revenues together and all expenses together. Also prepare the earnings- per- share section of the statement.
2. Using Exhibit 11- 2 (p. 631) as an example, prepare a Statement of Comprehensive Income for Southern Harvest Foods, Inc., for the fiscal year ended June 30, 2014. Start with net income as computed in Requirement1.

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A1 Southern Harvest Foods, Inc. Income Statement June 30, 2014 2 Revenue and gains: 3 Sales 4 Paid-in capital in excess of par- common 5 Total revenues and gains 6 Expenses and losses: 7 Cost of goods sold 8 Selling expenses 91-General expenses 10 Sales returns 11 Unrealized loss on available-for-sale investments 12 Dividends paid 13 Sales discounts 14 Income tax expense 15 16 Income from operations 17 Other gains and losses: $ 897,000 15,000 912,000 $363,000 49,000 75,000 21,000 14,000 16,000 12,000 113,100 Total expenses and losses 663,100 248,900 Extraordinary gain 19 Loss on discontinued operations 20 Total other gains (losses) 21 Net income 22 Eamings per share 23 44,000 (28.000 16,000 264,900