The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,350,000 Interest revenue 80,000 Loss on sale of investments 22,500 Cost of goods sold 1,200,300 Loss on inventory write-down (obsolescence) 200,000 Selling expense 300,000 General and administrative expense 150,000 Interest expense 90,000 There were 160,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%. Required: Prepare a single-step income statement for 2021, including EPS disclosures. Prepare a multiple-step income statement for 2021, including EPS disclosures.
The following is a partial
| Account Title | Debits | Credits |
| Sales revenue | 2,350,000 | |
| Interest revenue | 80,000 | |
| Loss on sale of investments | 22,500 | |
| Cost of goods sold | 1,200,300 | |
| Loss on inventory write-down (obsolescence) | 200,000 | |
| Selling expense | 300,000 | |
| General and administrative expense | 150,000 | |
| Interest expense | 90,000 | |
There were 160,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.
Required:
-
Prepare a single-step income statement for 2021, including EPS disclosures.
-
Prepare a multiple-step income statement for 2021, including EPS disclosures.
A single step income statement is a basic financial statement format that lists all expenses including cost of good sold in one column. It doesn't break expenses out into categories.
A multi-step income statement reports a company's revenues, expenses and overall profit or loss for a specific reporting period
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
