Requirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted.) Star Company Income Statement For the year ended December 31, 2020 Sales %24 4,658,000 Gross profit Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations Net income

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Partial listing of accounts
Dr. (Cr.)
Common shares
$ (2,000,000)
Cost of goods sold
3,778,000
Depreciation expense
77,000
Dividends declared
160,000
Employee wages and benefits
959,000
Loss from discontinued operations before tax
105,000
Marketing and advertising expenses
640,000
Retained earnings, January 1, 2020
(447,000)
Sales
(4,658,000)
Utilities expense
312,000
During the year, the company issued shares for proceeds of $430,000. In addition,
the company had a change in depreciation policy that required a retroactive
adjustment which increased the prior year's depreciation expense by $63,000.
Star pays income tax at the rate of 20%. Assume that all of the above items except
for retained earnings are before tax.
|
Transcribed Image Text:Partial listing of accounts Dr. (Cr.) Common shares $ (2,000,000) Cost of goods sold 3,778,000 Depreciation expense 77,000 Dividends declared 160,000 Employee wages and benefits 959,000 Loss from discontinued operations before tax 105,000 Marketing and advertising expenses 640,000 Retained earnings, January 1, 2020 (447,000) Sales (4,658,000) Utilities expense 312,000 During the year, the company issued shares for proceeds of $430,000. In addition, the company had a change in depreciation policy that required a retroactive adjustment which increased the prior year's depreciation expense by $63,000. Star pays income tax at the rate of 20%. Assume that all of the above items except for retained earnings are before tax. |
The following is a partial listing of the accounts for Star Company for the year ended December 31, 2020, in alphabetical order.
E (Click the icon to view the partial listing of accounts.)
a(Click the icon to view the facts.)
Required
Requirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted.)
Star Company
Income Statement
For the year ended December 31, 2020
Sales
4.658.000
Gross profit
Income before income taxes
Income tax expense
Income from continuing operations
Loss from discontinued operations
Net income
Choose from any list or enter any number in the input fields and then click Check Answer.
Transcribed Image Text:The following is a partial listing of the accounts for Star Company for the year ended December 31, 2020, in alphabetical order. E (Click the icon to view the partial listing of accounts.) a(Click the icon to view the facts.) Required Requirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted.) Star Company Income Statement For the year ended December 31, 2020 Sales 4.658.000 Gross profit Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations Net income Choose from any list or enter any number in the input fields and then click Check Answer.
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