PART A:

Prepare a partial multi-step income statement for Cougar Corp for 2015. The income statement should begin with income from continuing operations before income tax which is given to you, and end with net income.

For income statement items listed net of tax, please provide the applicable tax amount

Relevant Information

1.

Income from continuing operations before income tax is $93,000.

2.

Assume a tax rate of 35% for all income statement items.

PART B:

Problem 1, Part B

Instructions

Prepare the earnings per share disclosure that would be found on the face of Cougar Corps 2015 income statement.

Relevant Information

1.

The average common shares outstanding in 2015 for Cougar Corp is 20,000 shares.

2.

Cougar Corp paid $10,000 in dividends on common stock, and $0 in preferred dividends.

TRIAL BALANCE FOR PROBLEM1 USE THIS TRIAL BALANCE WITH PROBLEM 1, PARTS A and B Presented below is the final trial balance of the 2015 year-end account balances of Cougar Corp a merchandising company Cougar Corp Trial Balance December 2015 Debit Accounts Accounts Payable Accounts Receivable Accumulated Depreciation Administrative and General Expenses Buildings Cash Common Stock Cost of Goods Sold Depreciation Expense Equipment Land Loss from earthquake damage (extraordinary item) Loss from disposal of discontinued operation Retained Earnings, Beginning Sales Revenue Selling Expenses Supplies Unearned Revenue Total Credit 20,000 40,000 10,000 23,000 97,000 18,500 118,000 200,000 3,000 84,000 20,000 9,000 16,000 43,000 355,000 36,000 1,500 2,000 548,000 548,000