The following is a partial trial balance for General Lighting Corporation as of
ID: 2512270 • Letter: T
Question
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018:
200,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%.
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.
Required 1
Required 2
Prepare a single-step income statement for 2018, including EPS disclosures. (Round EPS answer to 2 decimal places.)
2
Required 2
Prepare a multiple-step income statement for 2018, including EPS disclosures. (Round EPS answer to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)
Account Title Debits Credits Sales revenue 2,500,000 Interest revenue 83,000 Loss on sale of investments 24,000 Cost of goods sold 1,220,000 Loss from write-down of inventory due to obsolescence 230,000 Selling expenses 330,000 General and administrative expenses 165,000 Interest expense 82,000Explanation / Answer
General Lighting Corporation Multi Step Income Statement For the year ended 31 Dec 2018, Detail Amount Amount Sales $2,500,000 Less: Cost of Goods Sold $1,220,000 Gross Profit $1,280,000 Less: Operating Expense Selling Expense 330000 General & Administrative Expense $165,000 Loss from inventory Write Down $230,000 Total Operating Expense $725,000 Net Operating Income (A) $555,000 Othe Revenue Interest Revenue $83,000 Less: Other Expense Interest Expense -$82,000 Loss on Sale of Investment -$24,000 Net other- Income (B) -$23,000 Total Income Before Tax (A+B) $532,000 Less: Tax Expense @40% $212,800 Net Income After Tax $319,200 No. of Share 200000 EPS ( Net Income/No. of Share) $1.60 General Lighting Corporation Single Step Income Statement For the year ended 31 Dec 2018, Detail Amount Amount Revenue & Gain Sales $2,500,000 Interest Revenue $83,000 Total Revenue & Gains $2,583,000 Less: Expenses & Losses Cost of Goods Sold $1,220,000 Selling Expense 330000 General & Administrative Expense $165,000 Loss from inventory Write Down $230,000 Interest Expense $82,000 Loss on Sale of Investment $24,000 Total Expenses & Losses $2,051,000 Net Income before Tax $532,000 Less: Tax Expense @40% $212,800 Net Income After Tax $319,200 No. of Share $200,000 EPS ( Net Income/No. of Share) $1.60
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