14. The trial balance of Rollins Inc. included the following accounts as of December 31, 2021: Debits Credits Sales revenue 5,300,000 Interest revenue 37,000 Loss on sale of investments 15,000 Loss on debt investments 126,000 Gain on projected benefit obligation 230,000 Cost of goods sold 3,860,000 Selling expense 340,000 Restructuring costs 150,000 Interest expense 15,000 General and administrative expense 240,000 The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required: Prepare a 2021 single, continuous statement of comprehensive income for Rollins Inc. Use a multiple-step income statement format. (Amounts to be deducted should be indicated with a minus sign. Round Earnings per share answer to 2 decimal places.)
14. The trial balance of Rollins Inc. included the following accounts as of December 31, 2021: Debits Credits Sales revenue 5,300,000 Interest revenue 37,000 Loss on sale of investments 15,000 Loss on debt investments 126,000 Gain on projected benefit obligation 230,000 Cost of goods sold 3,860,000 Selling expense 340,000 Restructuring costs 150,000 Interest expense 15,000 General and administrative expense 240,000 The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required: Prepare a 2021 single, continuous statement of comprehensive income for Rollins Inc. Use a multiple-step income statement format. (Amounts to be deducted should be indicated with a minus sign. Round Earnings per share answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14. The
| Debits | Credits | |||
| Sales revenue | 5,300,000 | |||
| Interest revenue | 37,000 | |||
| Loss on sale of investments | 15,000 | |||
| Loss on debt investments | 126,000 | |||
| Gain on projected benefit obligation | 230,000 | |||
| Cost of goods sold | 3,860,000 | |||
| Selling expense | 340,000 | |||
| Restructuring costs | 150,000 | |||
| Interest expense | 15,000 | |||
| General and administrative expense | 240,000 | |||
The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%.
Required:
Prepare a 2021 single, continuous statement of comprehensive income for Rollins Inc. Use a multiple-step income statement format. (Amounts to be deducted should be indicated with a minus sign. Round Earnings per share answer to 2 decimal places.)
Transcribed Image Text:Total other income, net
Income before income taxes
Net income (loss)
Other comprehensive income (net of tax):
Total other comprehensive income
Comprehensive income
Earnings per share
Transcribed Image Text:ROLLINS INC.
Statement of Comprehensive Income
For the Year Ended December 31, 2021
Gross profit
Operating expenses:
Total operating expenses
Operating income
Other income (expense):
Total other income, net
Income before income taxes
Net income (loss)
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Statement of comprehensive income is a form of financial statement which shows all incomes and all expenses of the business and at the end it shows net income or loss for the business.
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