Smith Products, Inc. provided the following information from its current-year trial balance. Smith Products, Inc.Trial Balance (Partial)For the Year Ended December 31AccountDebitCreditCommon Stock (no par)—Beginning Balance $84,000Retained Earnings—Beginning Balance 800,000Accumulated Other Comprehensive Income—Beginning Balance 185,000Dividends$140 Sales 600,000Dividend Income 1,000Interest Income 4,400Gain on Disposal of Plant Assets 1,050Unrealized Gain on Trading Securities 325Cost of Goods Sold42,500 Selling Expenses4,400 Advertising Expense6,800 Office Salaries Expense6,800 Sales Salaries Expense2,200 Office Supplies Expense1,900 Accounting and Legal Fees—Administrative250 Systems Consulting Fees—Administrative360 Amortization Expense—Administrative5,300 Depreciation Expense—Administrative8,000 Interest Expense930 Unrealized Loss on Available-for-Sale Investments—Before Tax910 Loss on Asset Impairment440 Loss on Discontinued Operations—Before Tax1,150 Smith issued $54,000 of common stock on October 1 of the current year. The company also repurchased$11,500 of its shares at the end of the reporting period. The company is subject to a 40% income tax rate. a. Prepare an income statement for the current year using each reporting format (single-step, multiple-step, and condensed, multiple-step with supporting disclosures). Round to the nearest dollar.b. Prepare a separate statement of comprehensive income for the current year.

The income statement is one of the financial statement that is prepared to know the financial…

Answered: Smith Products, Inc. provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Smith Products, Inc. provided the following information from its current-year trial balance.

Smith Products, Inc.
Trial Balance (Partial)
For the Year Ended December 31
Account	Debit	Credit
Common Stock (no par)—Beginning Balance		$84,000
Retained Earnings—Beginning Balance		800,000
Accumulated Other Comprehensive Income—Beginning Balance		185,000
Dividends	$140
Sales		600,000
Dividend Income		1,000
Interest Income		4,400
Gain on Disposal of Plant Assets		1,050
Unrealized Gain on Trading Securities		325
Cost of Goods Sold	42,500
Selling Expenses	4,400
Advertising Expense	6,800
Office Salaries Expense	6,800
Sales Salaries Expense	2,200
Office Supplies Expense	1,900
Accounting and Legal Fees—Administrative	250
Systems Consulting Fees—Administrative	360
Amortization Expense—Administrative	5,300
Depreciation Expense—Administrative	8,000
Interest Expense	930
Unrealized Loss on Available-for-Sale Investments—Before Tax	910
Loss on Asset Impairment	440
Loss on Discontinued Operations—Before Tax	1,150

Smith issued $54,000 of common stock on October 1 of the current year. The company also repurchased

$11,500 of its shares at the end of the reporting period. The company is subject to a 40% income tax rate.

a. Prepare an income statement for the current year using each reporting format (single-step, multiple-step, and condensed, multiple-step with supporting disclosures). Round to the nearest dollar.

b. Prepare a separate statement of comprehensive income for the current year.

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