Question

The following information was taken from the records of Liz’s Theatrical Supplies for 2014. In addition to selling theatrical supplies, Liz owned and operated a theater until October 15, 2014, when Liz sold this component of the business. All listed amounts are pre-tax, but are subject to a 38% income tax rate.
Cost of goods sold ................. $490,823
Extraordinary loss ................ 50,000
Income from discontinued operations ......... 70,000
Interest income ................. 4,650
Loss from disposal of discontinued component ...... 95,000
Loss on write-off of obsolete inventory ......... 23,500
Net sales ...................... 791,650
Rent revenue .................. 16,000
Selling and administrative expenses ......... 158,330
Unrealized holding loss on available-for-sale securities ... 15,000

Required:
Prepare a single-step income statement and statement of comprehensive income for 2014 using a single-statement format.



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  • CreatedSeptember 10, 2014
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