Exercise 4-2 Income statement format; single step and multiple step [LO4-1, 4-5]
ID: 2339550 • Letter: E
Question
Exercise 4-2 Income statement format; single step and multiple step [LO4-1, 4-5]
The following is a partial trial balance for the Green Star Corporation as of December 31, 2018:
100,000 shares of common stock were outstanding throughout 2018.
Required:
1. Prepare a single-step income statement for 2018, including EPS disclosures.
2. Prepare a multiple-step income statement for 2018, including EPS disclosures.
Explanation / Answer
Green Star Corporation Single Step Income Statement For the year End December 31, 2018 Revenues: Amount Amount Sales Revenue $ 13,50,000 Interest Revenue $ 34,000 Gain on sales of investments $ 54,000 Total Revenues $ 14,38,000 Expenses: Cost of Goods Sold $ 7,30,000 Selling Expenses $ 1,80,000 General and adminsitrative expenses $ 79,000 Interest Expenses $ 44,000 Income tax expenses $ 1,34,000 Total Expenses $ 11,67,000 Net Income $ 2,71,000 Divide by No. of Shares Outstanding 1,00,000 shares Earning Per shares $ 2.71 Per Share Green Star Corporation Multiple Step Income Statement For the year End December 31, 2018 Particulars Amount Sales Revenue $ 13,50,000 Cost of Goods Sold $ 7,30,000 Gross Profit $ 6,20,000 Less : Operating Expenses Selling Expenses $ 1,80,000 General and adminsitrative expenses $ 79,000 Interest Expenses $ 44,000 Total Expenses $ 3,03,000 Operating Income $ 3,17,000 Non-Opearing and others Interest Revenue $ 34,000 Gain on sales of investment $ 54,000 $ 88,000 Net Income before Taxes $ 4,05,000 Less : IncomeTaxe Expenses $ 1,34,000 Net income after Taxes or Bal. Available to Shareholers $ 2,71,000 Divide by No. of Shares Outstanding 1,00,000 shares Earning Per shares $ 2.71 Per Share
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