Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019:

Sales	$139,000		Interest revenue	$3,300
Purchases returns	5,200		Purchases discounts taken	2,700
Gain on sale of equipment (pretax)	3,800		Inventory, January 1, 2016	12,100
Freight-in	3,400		Purchases	89,700
Selling expenses	15,600		Administrative expenses	24,200
Unrealized increase in fair value of			Loss from truck accident (pretax)	6,500
available-for-sale securities	2,400

The following additional information is also available.

The December 31, 2016, ending inventory is $14,700.

During 2016, 4,200 shares of common stock were outstanding the entire year.

The income tax rate is 30% on all items of income.

Required:

1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskin's cost of goods sold.

GASKIN COMPANY
Schedule 1: Cost of Goods Sold
For Year Ended December 31, 2016
		$
	$
	$
		$
		$

2. Prepare a single-step income statement for the year ended December 31, 2016. Disregard EPS disclosure.

GASKIN COMPANY
Income Statement (Single-Step)
For Year Ended December 31, 2016
Revenues
	$
Total revenues		$
Expenses
	$
Total expenses
		$

3. Prepare a multiple-step income statement for the year ended December 31, 2016. Disregard EPS disclosure.

GASKIN COMPANY
Income Statement (Multi-Step)
For Year Ended December 31, 2016
Revenues
		$
		$
Operating expenses
	$
Total operating expenses
		$
Other items
	$
		$
		$

4. Prepare a statement of comprehensive income for the year ended December 31, 2016.

GASKIN COMPANY
Statement of Comprehensive Income
For Year Ended December 31, 2016
	$
Other comprehensive income:
	$

Answer rating: 100% (QA)

Solution of all four parts are given below 1 2 12100 GASKIN COMPANY Schedule 1 Cost of Goods S... View the full answer