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The following is a partial trial balance for General Lighting Corporation as of

ID: 2340576 • Letter: T

Question

The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss from write-down of inventory due to obsolescence Selling expenses General and administrative expenses Interest expense Debits Credits 3,898,8ee 93,900 29,00 33,90 215,900 1,328,98e 92,880 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%. Requlrec 1. Prepare a single-step income statement for 2018, including EPS disclosures. 2. Prepare a multiple-step income statement for 2018, including EPS disclosures. Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare a single-step income statement for 2018, including EPS disclosures. (Round EPS answer to 2 decimal places.) Income Statement For the Year Ended 31, 2018 Earnings per share

Explanation / Answer

General Lighting Corporation

Income statement

For the year ended December 31 2018

Revenues and gains:

$

Sales Revenue

3000000

Interest revenue

93000

Total revenue and gains

3093000

Expenses and losses

Cost of goods sold

1320000

Selling expenses

430000

General and administration expenses

215000

Interst expense

92000

Loss on sale of investment

29000

Loss from inventory written down

330000

Total expenses and losses

2416000

Income before taxes and extraordinary item

677000

Income tax expense

270800

Net income

406200

Earnings per share:

Income before tax

2.256667

Tax expense

0.902667

Net income

1.354

*income components divided by 300000 shares

General Lighting Corporation

Income statement

For the year ended December 31 2018

Multistep income statement

Revenues and gains:

$

$

Sales Revenue

3000000

Cost of goods sold

1320000

Gross profit

1680000

Operating expenses:

Selling expenses

430000

General and administration expenses

215000

Loss from inventory written down

330000

Total Operating expenses

975000

Operating income

705000

Other income/ Expense:

Interest revenue

93000

loss on sale of investments

-29000

Interest expense

-92000

Total other income

-28000

Income before taxes

677000

Tax expense at 40%

270800

Net income

406200

Earnings per share:

Income before tax

2.256667

Tax expense

0.902667

Net income

1.354

*income components divided by 300000 shares

General Lighting Corporation

Income statement

For the year ended December 31 2018

Revenues and gains:

$

Sales Revenue

3000000

Interest revenue

93000

Total revenue and gains

3093000

Expenses and losses

Cost of goods sold

1320000

Selling expenses

430000

General and administration expenses

215000

Interst expense

92000

Loss on sale of investment

29000

Loss from inventory written down

330000

Total expenses and losses

2416000

Income before taxes and extraordinary item

677000

Income tax expense

270800

Net income

406200

Earnings per share:

Income before tax

2.256667

Tax expense

0.902667

Net income

1.354

*income components divided by 300000 shares

General Lighting Corporation

Income statement

For the year ended December 31 2018

Multistep income statement

Revenues and gains:

$

$

Sales Revenue

3000000

Cost of goods sold

1320000

Gross profit

1680000

Operating expenses:

Selling expenses

430000

General and administration expenses

215000

Loss from inventory written down

330000

Total Operating expenses

975000

Operating income

705000

Other income/ Expense:

Interest revenue

93000

loss on sale of investments

-29000

Interest expense

-92000

Total other income

-28000

Income before taxes

677000

Tax expense at 40%

270800

Net income

406200

Earnings per share:

Income before tax

2.256667

Tax expense

0.902667

Net income

1.354

*income components divided by 300000 shares