The ledger of Ivanhoe Corporation at November 30, 2017, contains the following summary data: Cash dividendscommon 1,103,000
Question:
The ledger of Ivanhoe Corporation at November 30, 2017, contains the following summary data:
Cash dividends—common | 1,103,000 | Operating expenses | $1,123,000 | |||
Cash dividends—preferred | 25,000 | Other comprehensive income—loss on equity investments (before income tax) | 93,000 | |||
Common shares | 326,500 | Rent revenue | 61,000 | |||
Cost of goods sold | 7,410,000 | Preferred shares ($5 noncumulative) | 403,000 | |||
Depreciation expense | 363,000 | Retained earnings, December 1, 2020 | 754,000 | |||
Sales | 9,033,000 |
Your analysis reveals the following additional information:
1.The company has a 25% income tax rate.
2.The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $19,600 before income tax. The division was sold at a loss of $81,500 before income tax.
3.There were 200,000 common and 5,000 preferred shares issued on December 1, 2016, with no changes during the year.
(a) Prepare a multiple-step income statement for the year.
(b) Prepare a statement of comprehensive income as a separate statement.
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak