Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of...
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Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $18,400,000 10,700,000 1,170,000 670,000 870,000 1. $470,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $570,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2020 was understated by $67,000 due to a mathematical error. 4. The company experienced a negative foreign currency translation adjustment of $370,000 and had an unrealized gain on debt securities of $350,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company's effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Sales revenue Cost of goods sold Gross profit DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Operating expenses: Loss on inventory write-down Restructuring costs $ (570,000) (470,000) $ 18,400,000 10,700,000 7,700,000 Sales revenue Cost of goods sold Gross profit Operating expenses: Loss on inventory write-down Restructuring costs DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Selling expenses General and administrative expenses Total operating expenses Operating income Other income (expense): Interest expense Income before income taxes Income tax expense Net income Other comprehensive income, net of tax: Gain on debt securities Foreign currency translation adjustment Total other comprehensive income (loss) Comprehensive income $ (570,000) (470,000) 670,000 1,170,000 262,500 (277,500) $ 18,400,000 10,700,000 7,700,000 800,000 6,900,000 (870,000) 6,030,000 6,030,000 (15,000) $ 6,015,000 Sales revenue Cost of goods sold Gross profit Operating expenses: Loss on inventory write-down Restructuring costs DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Selling expenses General and administrative expenses Total operating expenses Operating income Other income (expense): Interest expense Income before income taxes Income tax expense Net income Other comprehensive income, net of tax: Gain on debt securities Foreign currency translation adjustment Total other comprehensive income (loss) Comprehensive income $ (570,000) (470,000) 670,000 1,170,000 262,500 (277,500) $18,400,000 10,700,000 7,700,000 800,000 6,900,000 (870,000) 6,030,000 6,030,000 (15,000) $ 6,015,000 Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $18,400,000 10,700,000 1,170,000 670,000 870,000 1. $470,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $570,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2020 was understated by $67,000 due to a mathematical error. 4. The company experienced a negative foreign currency translation adjustment of $370,000 and had an unrealized gain on debt securities of $350,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company's effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.) Sales revenue Cost of goods sold Gross profit DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Operating expenses: Loss on inventory write-down Restructuring costs $ (570,000) (470,000) $ 18,400,000 10,700,000 7,700,000 Sales revenue Cost of goods sold Gross profit Operating expenses: Loss on inventory write-down Restructuring costs DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Selling expenses General and administrative expenses Total operating expenses Operating income Other income (expense): Interest expense Income before income taxes Income tax expense Net income Other comprehensive income, net of tax: Gain on debt securities Foreign currency translation adjustment Total other comprehensive income (loss) Comprehensive income $ (570,000) (470,000) 670,000 1,170,000 262,500 (277,500) $ 18,400,000 10,700,000 7,700,000 800,000 6,900,000 (870,000) 6,030,000 6,030,000 (15,000) $ 6,015,000 Sales revenue Cost of goods sold Gross profit Operating expenses: Loss on inventory write-down Restructuring costs DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Selling expenses General and administrative expenses Total operating expenses Operating income Other income (expense): Interest expense Income before income taxes Income tax expense Net income Other comprehensive income, net of tax: Gain on debt securities Foreign currency translation adjustment Total other comprehensive income (loss) Comprehensive income $ (570,000) (470,000) 670,000 1,170,000 262,500 (277,500) $18,400,000 10,700,000 7,700,000 800,000 6,900,000 (870,000) 6,030,000 6,030,000 (15,000) $ 6,015,000
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Based on the information provided here is a single continuous multiplestep statement of comprehensive income for Duke Company for the year ended December 31 2021 DUKE COMPANY Statement of Comprehensiv... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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