The following pre-tax information is taken from Trader J's Corp.'s adjusted trial balance as of December 31,
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Question:
The following pre-tax information is taken from Trader J's Corp.'s adjusted trial balance as of December 31, 2020, its annual closing.
Sales revenue, net | $ 950,000 |
Gain on sale of investment | 8,000 |
depreciation expense | 25,000 |
Selling expenses | 140.000 |
General and adminsitrative expenses | 92,300 |
rental income | 18,000 |
investment income | 7,000 |
Interest expenses | 9,000 |
Recovery of prior expropriation loss | 80.000 |
Loss on sale of long-term investments | 10,000 |
cost of goods sold | 550.000 |
Loss due to casualty | 30,000 |
Average income tax rate on all items | 25% |
common shares outstanding | 40,000 shares |
to. Prepare a one-step income statement that includes earnings per share disclosures.
- Note: Record Income and Gains and Expenses and Losses in order from the highest dollar amount to the lowest dollar amount.
- Note: Do not use negative signs with your answers.
- Note: Round the earnings per share amount to two decimal places.
Merchant J Corporation | |
---|---|
Statement of income | |
For the year ended December 31, 2020 | |
income and earnings | |
Sales revenue, net | Answer |
Gain from recovery of loss from expropriation | Answer |
rental income | Answer |
Gain on sale of investment | Answer |
investment income | Answer |
Total revenue and earnings | Answer |
expenses and losses | |
cost of goods sold | Answer |
Selling expenses | Answer |
General and adminsitrative expenses | Answer |
Loss due to casualty | Answer |
depreciation expense | Answer |
Loss on sale of long-term investments | Answer |
Interest expenses | Answer |
Total expenses and losses | Answer |
Profit before income taxes | Answer |
Income from tax expenses | Answer |
Net Income | Answer |
earnings per share | Answer |
b. Prepare a multi-step income statement that includes earnings per share disclosures. Assume that rental income is non-operating.
- Note: Record Other Income and Gains and Other Expenses and Losses in order from the highest dollar amount to the lowest dollar amount.
- Note: Do not use negative signs with your answers.
- Note: Round the earnings per share amount to two decimal places.
Merchant J Corporation | ||
---|---|---|
Statement of income | ||
For the year ended December 31, 2020 | ||
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Gross profit | Answer | |
operating expenses | ||
selling expenses | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
depreciation expense | Answer | |
Total operating expenses | Answer | |
operating income | Answer | |
Other income and gains | ||
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | Answer |
Other expenses and losses | ||
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | Answer |
Profit before income taxes | Answer | |
Response Loss from casualties Cost of goods sold Depreciation expense Gain from recovery of expropriation loss Gain from sale of investment General and administrative expenses Income tax expense Interest expense Investment income Loss from sale of long-term investments Income from rent Sales income, net Sales expense | Answer | |
Net Income | Answer | |
earnings per share | Answer |
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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