Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.1E
Multiple-Step and Single-Step Statements of Net Income.
The Tamer Tire Company provided the following partial
Tamer Tire Company Trial Balance (Selected Accounts) For the Year Ended December 31 |
||
Account | Debit | Credit |
Dividends | $ 2,300 | |
Sales | $320,000 | |
Interest Income | 12,000 | |
Dividend Income | 8,000 | |
Gain on Flood Damage | 32,000 | |
Gain on Disposal of Plant Assets | 3,400 | |
Unrealized Gain on Trading Investments | 46,000 | |
Cost of Goods Sold | 64,000 | |
Office Supplies Expense | 5,000 | |
Advertising Expense | 10,000 | |
Office Salaries Expense | 14,000 | |
Selling Expenses | 36,000 | |
Accounting and Legal Fees—General | 3,500 | |
Sales Salaries Expense | 7,000 | |
Systems Consulting Fees—General | 2,000 | |
Amortization Expense—General | 11,000 | |
Interest Expense | 4,500 | |
Loss on Asset Impairment | 12,500 | |
Loss on Discontinued Operations—Before Tax | 20,000 | |
Unrealized Loss on Available-for-Sale Bonds | 5,600 |
Required
- a. Prepare a single-step income statement.
- b. Prepare a multiple-step income statement.
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Melville Corporation provided the following partial-trial balance for the current year
Prepare a single-step income statement for the year ended December 31.
Melville is subject to a 40% income tax rate. (Round all amounts to the nearest whole dollar.)
Melville Corporation
Trial Balance (Selected Accounts)
For the Year Ended December 31
Account
Debit
Credit
Dividends
$1,400
Sales
$120,000
Dividend Income
590
Interest Income
900
Gain on Disposal of Plant Assets
1,100
Unrealized Gain on Trading Investments
1,700
Cost of Goods Sold
45,000
Office Supplies Expense
4,100
Sales Salaries Expense
3,300
Selling Expenses
15,000
Accounting and Legal Fees—General Expense
830
Advertising Expense
3,800
Office Salaries Expense
6,600
Depreciation Expense—General Expense
9,400
Interest Expense
2,200
Loss on Asset Impairment
2,400
Timber Company provided the following information for the current year:
LOADING...
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The company is subject to a
40%
income tax rate.
Read the
requirements
LOADING...
.
Requirement a. Prepare a single statement of comprehensive income beginning with operating income. (Use parentheses or a minus sign to enter any loss amounts.)
Pine Timber Company
Statement of Comprehensive Income
For the Year Ended December 31
Operating Income
$342,000
Other Revenues and Expenses
Unrealized Gain on Trading Portfolio
$13,000
Loss on Sale of Investments in Bonds
(27,000)
(14,000)
Income Before Tax
$328,000
Income Tax Expense
(131,200)
Income From Continuing Operations
$196,800
Discontinued Operations
Income From Operations of Discontinued Segment, Net of Tax
$22,800
Loss From…
Mellville Corporation provided the following partial-trial balance for the current yearPrepare a single-step income statement for the year ended December 31.
Melville is subject to a 40% income tax rate
Melville Corporation
Trial Balance (Selected Accounts)
For the Year Ended December 31
Account
Debit
Credit
Dividends
$1,400
Sales
$120,000
Dividend Income
590
Interest Income
900
Gain on Disposal of Plant Assets
1,100
Unrealized Gain on Trading Investments
1,700
Cost of Goods Sold
45,000
Office Supplies Expense
4,100
Sales Salaries Expense
3,300
Selling Expenses
15,000
Accounting and Legal Fees—General Expense
830
Advertising Expense
3,800
Office Salaries Expense
6,600
Depreciation Expense—General Expense
9,400
Interest Expense
2,200
Loss on Asset Impairment
2,400
Revenue and Gains…
Chapter 5 Solutions
Intermediate Accounting (2nd Edition)
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