Duke Company's records show the following account balances at December 31, 2024: $ 16,800,000 9,900,000 1,090,000 Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense 590,000 790,000 Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount. 1. $390,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $490,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2023 was understated by $59,000 due to a mathematical error. The amount is considered material. 4. The company experienced a negative foreign currency translation adjustment of $290,000 and had an unrealized gain on debt securities of $270,000. Required: Prepare a single, continuous multiple-step statement of comprehensive Income for 2024. The company's effective tax rate on all items affecting comprehensive Income is 25%. Each component of other comprehensive Income should be displayed net of tax. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign.
Duke Company's records show the following account balances at December 31, 2024: $ 16,800,000 9,900,000 1,090,000 Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense 590,000 790,000 Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount. 1. $390,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $490,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2023 was understated by $59,000 due to a mathematical error. The amount is considered material. 4. The company experienced a negative foreign currency translation adjustment of $290,000 and had an unrealized gain on debt securities of $270,000. Required: Prepare a single, continuous multiple-step statement of comprehensive Income for 2024. The company's effective tax rate on all items affecting comprehensive Income is 25%. Each component of other comprehensive Income should be displayed net of tax. Ignore EPS disclosures. Note: Amounts to be deducted should be indicated with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
55.
Accounting
Transcribed Image Text:Sales revenue
Cost of goods sold
Gross profit
Operating expenses:
General and administrative expense
Selling expense
DUKE COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2024
Restructuring costs
Loss on inventory write-down
Total operating expenses
Operating income
Other income (expense):
Interest expense
Income before income taxes
Income tax expense
Net income
Other comprehensive income, net of tax:
Foreign currency translation adjustment
Gain on debt securities
Total other comprehensive income (loss)
Comprehensive income
$
1,090,000
590,000
390,000
490,000
$
$
16,800,000
(9,900,000)
6,900,000
2,560,000
4,340,000
4,340.000
887,500
3,452,500
0
3,452,500
Drou
Transcribed Image Text:Duke Company's records show the following account balances at December 31, 2024:
Sales revenue
Cost of goods sold
General and administrative expense
Selling expense
Interest expense
$ 16,800,000
9,900,000
1,090,000
590,000
790,000
Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in
amount.
1. $390,000 in restructuring costs were incurred in connection with plant closings.
2. Inventory costing $490,000 was written off as obsolete. Material losses of this type are considered to be unusual.
3. It was discovered that depreciation expense for 2023 was understated by $59,000 due to a mathematical error. The amount is
considered material.
4. The company experienced a negative foreign currency translation adjustment of $290,000 and had an unrealized gain on debt
securities of $270,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive Income for 2024. The company's effective tax rate on all items
affecting comprehensive Income is 25%. Each component of other comprehensive Income should be displayed net of tax. Ignore EPS
disclosures.
Note: Amounts to be deducted should be Indicated with a minus sign.
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