Question #1 - Preparing a Multiple-Step Income

Allison Corporation had the following information for their June 30, 2021 fiscal year.

Cost of goods sold $ 44,000,000

Dividend revenue 220,000

Dividends declared on common stock 310,000

Dividends declared on preferred stock 190,000

Gain on the disposition of the retail division (Gross) 1,200,000

General and administrative expenses 3,200,000

Interest expense 290,000

Loss due to frost damage in New Mexico (Gross) 200,000

Loss due to flood damage in New York (Gross) 420,000

Loss on operations of the retail division (Gross) 700,000

Loss on the sale of land 75,000

Understatement of Bad Debts (Gross) - Prior Year 175,000

Retained earnings balance, January 1, 2021 24,000,000

Sales revenue 65,000,000

Selling expenses 600,000

Translation Losses on FX Currency 250,000

Unrealized Gains on Available for Sale Securities 850,000

Write-off on Equipment 400,000

question

Prepare: 1) A Multiple-Step Income Statement for Allison Corporation at its fiscal year-end. During the fiscal year ended June 30, 2021, there were 600,000 shares of common stock outstanding all year. Assume that the Tax Rate is 28%.

2) The Statement of Retained Earnings 3) The Statement of Comprehensive Income