Preparing a Multiple-Step Income Statement and a Retained Earnings Statement

The following pretax amounts are taken from the accounts of J&J Inc. at December 31, 2020, its annual year-end ($ thousands). Assume an average 25% tax rate on all items.

Required

a. Prepare a multiple-step income statement, including intraperiod income tax allocation and EPS disclosure.

What is the retained earnings for 2020?

Question 4 Not complete Mark 21.00 out of 22.00 Remove flag Preparing a Multiple-Step Income Statement and a Retained Earnings Statement The following pretax amounts are taken from the accounts of J&J Inc. at December 31, 2020, its annual year-end ($ thousands). Assume an average 25% tax rate on all items. Sales revenue $544,000 272,000 144,000 Cost of goods sold Selling and administrative expenses Gain on sale of land held for speculation Prior period adjustment, correction of error from 2019, pretax (a debit) 48,000 25,600 Interest expense 3,200 8,000 Cash dividends declared and paid Retained earnings, December 31, 2019 Common stock, outstanding. 164,800 25,000 shares Required a. Prepare a multiple-step income statement, including intraperiod income tax allocation and EPS disclosure. Do not use negative signs with any of your answers. Round the per share amount to two decimal places J&J Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue $ Cost of goods sold Gross profit Selling and administrative expenses Operating income Other revenues and gains 544,000 272,000 272,000 144,000 128,000 Gain on sale of land 48,000 Other expenses and losses Interest expense > 3,200 Income before income taxes 172,800 Income tax expense 43,200 129,600 Net income $ Earnings per share $ 5.18 b. Determine the December 31, 2020, balance in retained earnings. $ 247,200 x Check