Included in the December 31, 2010 adjusted trial balance of the Gold Company are the following accounts:
Question:
Included in the December 31, 2010 adjusted trial balance of the Gold Company are the following accounts:
Cost of goods sold ............. $101,000
Sales .................... 200,000
General and administrative expenses ...... 20,000
Loss from strike (pretax) .......... 9,000
Selling expenses .............. $28,000
Sales returns and allowances ......... 5,000
Interest revenue .............. 4,000
Extraordinary loss (pretax) ......... 17,000
Additional data:
1. Seven thousand shares of common stock have been outstanding the entire year.
2. The income tax rate is 30% on all items of income.
Required
1. Prepare a 2010 multiple-step income statement.
2. Prepare a 2010 single-step income statement.
3. Discuss how Gold Company’s income statement in Requirement 1 might be different if it used IFRS.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
1 GOLD COMPANY Income Statement For Year Ended December 31 2010 Sales 200000 Less Sales returns and allowances 5000 Net sales 195000 Cost of goods sol...View the full answer
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
