Chapter 4, Question 17

The following information is available for Skysong Inc. for the year ended December 31, 2017:

Loss on discontinued operations		$70,000		Retained earnings January 1, 2017		$1,500,000
Rent revenue		91,000		Selling expenses		878,000
Income tax applicable to continuing operations		292,000		Income tax applicable to loss on discontinued operations		32,000
Administrative expenses		504,000		Cost of goods sold		1,674,000
Loss on write-down of inventory		45,000		Sales revenue		3,725,000
Gain on sale of equipment		30,000		Cash dividends declared		218,000
Unrealized gain on available-for-sale securities		35,000		Interest expense		52,000

200,000 shares were outstanding during all of 2017.

Part a)

Part b)

Part c)

Please show work!! And help me correct my mistakes

Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, eg. 1.45.) Skysong Inc. Income Statement For the Year Ended December 31, 2017 Sales Revenue $ 3,725,000 Cost of Goods Sold 1,674,000 i Gross Profit 2,051,000 Operating Expenses Selling Expenses UA 878,000 i Administrative Expenses 504.000 i 1382000 Income from Operations 669,000 Other Revenues and Gains Gain on the sale of Equipment 30.000 Rent Revenue 91,000 121,000 Other Expenses and Losses Interest Expense 52.000 i Inventory Loss 45.000 i 070 Other Expenses and Losses Interest Expense 52,000 i Inventory Loss 45,000 i 97.000 i Income from Continuing Operations Before Income Tax 218.000 Income Tax 292.000 i Income from Continuing Operations 4527000 Discontinued Operations Loss on Discontinued Operations 70,000 i Less Income Tax Net Income /(Loss) $ Per share of common stock: Income from Continuing Operations $ Loss on Discontinued Operations Net Income /(Loss) $ Prepare a comprehensive income statement for 2017 SKYSONG INC. Comprehensive Income Statement For the Year Ended December 31, 2017 Net Income / (Loss) $ Other Comprehensive Income Unrealized Holding Gain, Net of Tax 218,000 Comprehensive Income $ Prepare a retained earnings statement for 2017. (List items that increase retained earnings first.) SKYSONG INC. Retained Earnings Statement For the Year Ended December 31, 2017 Retained Earnings, January 1 1,500,000 Add Net Income / (Loss) Less Dividends Declared 218,000 Retained Earnings. December 31 $