Acc421 Intermediate Accounting: E4-16 Gibson Inc. (Various Reporting Formats)

Acc421 Intermediate Accounting

E4-16 (Various Reporting Formats)
The following information was taken from the records of Gibson Inc. for the year 2010. Income tax applicable to income from continuing operations $119,000; income tax applicable to loss on discontinued operations $25,500; income tax applicable to extraordinary gain $32,300; income tax applicable to extraordinary loss $20,400; and unrealized holding gain on available-for-sale securities $15,000.
Extraordinary gain 95,000
Loss on discontinued operations 75,000
Administrative expenses 240,000
Rent revenue 40,000
Extraordinary loss 60,000
Cash dividends declared 150,000
Retained earnings, January 1, 2010 600,000
Cost of goods sold 850,000
Selling expenses 300,000
Sales 1,700,000
Shares outstanding during 2010 were 100,000.

Instructions:
a. Prepare a single-step income statement for 2010. (Round per share common stock to 2 decimal places, e.g. 5.25 and all other answers to zero decimal places, e.g. 2,250. For per share common stock use either a negative sign preceding the number, e.g. -0.45 or parenthesis, e.g. (0.45) for negative numbers. Enter all other amounts as positive amounts and subtract where necessary. List multiple entries from largest to smallest amount, e.g. 10, 5, 2.)
b. Prepare a retained earnings statement for 2010. (Enter all amounts as positive amounts and subtract where necessary.)
c. Show how comprehensive income is reported using the second income statement format.
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