The following information was taken from the records of Novak Inc. for the year 2020: Income tax applicable to income from continuing operations $239,360; income tax applicable to loss on discontinued operations $32,640, and unrealized holding gain on available-for-sale securities (net of tax) $19,200. Gain on sale of equipment $121,600 Cash dividends declared $192,000 Loss on discontinued operations 96,000 Retained earnings January 1, 2020 3,360,000 Administrative expenses 307,200 Cost of goods sold 1,088,000 Rent revenue 51,200 Selling expenses 384,000 Loss on write-down of inventory 76,800 Sales Revenue 2,432,000 Shares outstanding during 2020 were 100,000. Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48.) $
The following information was taken from the records of Novak Inc. for the year 2020: Income tax applicable to income from continuing operations $239,360; income tax applicable to loss on discontinued operations $32,640, and unrealized holding gain on available-for-sale securities (net of tax) $19,200. Gain on sale of equipment $121,600 Cash dividends declared $192,000 Loss on discontinued operations 96,000 Retained earnings January 1, 2020 3,360,000 Administrative expenses 307,200 Cost of goods sold 1,088,000 Rent revenue 51,200 Selling expenses 384,000 Loss on write-down of inventory 76,800 Sales Revenue 2,432,000 Shares outstanding during 2020 were 100,000. Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48.) $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information was taken from the records of Novak Inc. for the year 2020: Income tax applicable to income from continuing operations $239,360; income tax applicable to loss on discontinued operations $32,640, and unrealized holding gain on available-for-sale securities (net of tax) $19,200.
| Gain on sale of equipment | $121,600 | Cash dividends declared | $192,000 | |||
| Loss on discontinued operations | 96,000 | 3,360,000 | ||||
| Administrative expenses | 307,200 | Cost of goods sold | 1,088,000 | |||
| Rent revenue | 51,200 | Selling expenses | 384,000 | |||
| Loss on write-down of inventory | 76,800 | Sales Revenue | 2,432,000 |
Shares outstanding during 2020 were 100,000.
Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48.)
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Transcribed Image Text:Part 2
Prepare a comprehensive income statement for 2020, using the two statement format.
NOVAK INC.
Comprehensive Income Statement
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List of Accounts
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Transcribed Image Text:Part 3
Prepare a retained earnings statement for 2020. (List items that increase retained earnings first.)
NOVAK INC.
Retained Earnings Statement
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