The following items are from the adjusted trial balance of Bailey Corp. on December 31, the...

  

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The following items are from the adjusted trial balance of Bailey Corp. on December 31, the end of its annual accounting period. Assume an average 25% income tax on all items. Weighted average shares of common stock outstanding for the year were 10,000. Sales revenue $1,290,400 Depreciation for the period 12,000 Rent revenue 4,800 Gain on sale of investment 4,000 Cost of goods sold 660,000 Selling expenses 272,000 General and administrative expenses 220,000 Interest revenue Interest expense Loss on sale of investment 1,800 3,000 44,000 Prepare a multiple-step income statement for the 12 months ended December 31, including the earnings per share disclosure. Assume that rent revenue is a nonoperating revenue. Note: Use a negative sign only for an expense or loss item included in the section Other Revenues (Expenses). Note: Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. Bailey Corp. Income Statement For the Year Ended December 31 $ Sales revenue Cost of goods sold Gross profit Operating expenses: Selling expenses General and administrative expenses Depreciation expense Operating income Other revenues (expenses): Rent revenue Gain on sale of investment Interest revenue Interest expense Loss on sale of investment Income before income taxes Income tax expense Net income Earnings per share $ $ The following items are from the adjusted trial balance of Bailey Corp. on December 31, the end of its annual accounting period. Assume an average 25% income tax on all items. Weighted average shares of common stock outstanding for the year were 10,000. Sales revenue $1,290,400 Depreciation for the period 12,000 Rent revenue 4,800 Gain on sale of investment 4,000 Cost of goods sold 660,000 Selling expenses 272,000 General and administrative expenses 220,000 Interest revenue Interest expense Loss on sale of investment 1,800 3,000 44,000 Prepare a multiple-step income statement for the 12 months ended December 31, including the earnings per share disclosure. Assume that rent revenue is a nonoperating revenue. Note: Use a negative sign only for an expense or loss item included in the section Other Revenues (Expenses). Note: Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. Bailey Corp. Income Statement For the Year Ended December 31 $ Sales revenue Cost of goods sold Gross profit Operating expenses: Selling expenses General and administrative expenses Depreciation expense Operating income Other revenues (expenses): Rent revenue Gain on sale of investment Interest revenue Interest expense Loss on sale of investment Income before income taxes Income tax expense Net income Earnings per share $ $

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Sales revenue 1290400 Cost of goods sold 660000 Gross profit 6304... View the full answer