24. The partial trial balance of Rollins Inc. included the following accounts as of December 31, 2020: Debits Credits Sales revenue 6,500,000 Interest revenue 40,000 Dividend revenue 25,000 Unearned rent revenue 260,000 Interest payable 5,500 Cash 545,000 Merchandise inventory 256,000 Loss on sale of investments 10,000 Prepaid insurance premium 150,000 Cost of goods sold 4,900,000 Selling expenses 400,000 General and administrative expenses 300,000 Rollins' business segment, Division A, was sold at a pretax gain of 25,000 on July 1, 2020. It had earned a $13,000 pretax operating income from January 1, 2020 to the disposal date. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 40%. Required: Prepare a multiple-step income statement with earnings per share disclosure. No credit for a single-step income statement.
24. The partial
Debits Credits
Sales revenue 6,500,000
Interest revenue 40,000
Dividend revenue 25,000
Unearned rent revenue 260,000
Interest payable 5,500
Cash 545,000
Merchandise inventory 256,000
Loss on sale of investments 10,000
Prepaid insurance premium 150,000
Cost of goods sold 4,900,000
Selling expenses 400,000
General and administrative expenses 300,000
Rollins' business segment, Division A, was sold at a pretax gain of 25,000 on July 1, 2020. It had earned a $13,000 pretax operating income from January 1, 2020 to the disposal date. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 40%.
Required: Prepare a multiple-step income statement with earnings per share disclosure. No credit for a single-step income statement.
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