Using the data in the adjusted trial balance, prepare an income statement in good form for Benco?(just
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Question:
Using the data in the adjusted trial balance, prepare an income statement in good form for Benco?(just for this year, 20X3).? Assume the "loss on sale of warehouse" was actually a loss on the sale of a business component (a warehouse?division)? that qualifies as a discontinued operation.? The sale occurred?on the first?day of the year. (There were no other transactions for the warehouse?division.)
- Include subtotals for Gross profit and operating income as well as any other required subtotals and disclosures.
- Title and date your statement correctly-- this should look like a proper income statement.
- Do not combine income statement accounts from the?trial?balance.? Show each separately so that I can see what is being included.
Hint:
- Here, you are just changing the FORMAT to make it more useful.? Make sure your formulas make sense and that net income matches the solution.
- Because you have a discontinued operation, you need to compute tax expense for both continuing operations and the discontinued operation.? Total tax expense should not change from the adjusted trial balance, of course, it is just split up.
- ?Another hint: Don't?forget EPS!?There are 1,000 common stock shares outstanding throughout 20X3.??
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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