Question

The following items were taken from the adjusted trial balance of the Bremeur Corporation on 31 December 20X5. Assume an average 20% income tax on all items (including the divestiture loss). The accounting period ends 31 December. All amounts given are pretax and are subject to the same income tax rate. Bremeur had 30,000 shares outstanding at the beginning of the year. On 31 August 20X5, an additional 9,000 shares were issued; at the end of 20X5, 39,000 shares were outstanding.
Sales revenue from continuing operations........... $ 695,200
Revenue in business segment being discontinued.......... 75,000
Rent revenue........................ 2,400
Interest revenue ....................... 900
Gain on sale of investments .................. 2,000
Distribution expenses ..................... 136,000
General and administrative expenses.............. 110,000
Operating expenses in business segment being discontinued ..... 78,000
Interest expense ....................... 1,500
Depreciation and amortization.................. 6,000
Settlement of legal claim agains the company............. 10,000
Asset impairments, discontinued operation ............. 12,000
Cost of goods sold ....................... 330,000
Operating loss of discontinued operation to disposal date, before income tax. 75,000

Required:
1. Prepare a single- step income statement.
2. Prepare a multiple- step income statement.



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  • CreatedFebruary 17, 2015
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