The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 592,000 Interest revenue 32,000 Gain on sale of investments 86,000 Total revenues and gains 710,000 Expenses and losses: Cost of goods sold $ 325,000 Selling expense 67,000 Administrative expense 87,000 Interest expense 16,000 Restructuring costs 55,000 Income tax expense 40,000 Total expenses and losses 590,000 Net Income $ 120,000 Earnings per share $ 1.20 Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 592,000 Interest revenue 32,000 Gain on sale of investments 86,000 Total revenues and gains 710,000 Expenses and losses: Cost of goods sold $ 325,000 Selling expense 67,000 Administrative expense 87,000 Interest expense 16,000 Restructuring costs 55,000 Income tax expense 40,000 Total expenses and losses 590,000 Net Income $ 120,000 Earnings per share $ 1.20 Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following incorrect income statement was prepared by the accountant of the Axel Corporation:
| AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 |
|||||
| Revenues and gains: | |||||
| Sales revenue | $ | 592,000 | |||
| Interest revenue | 32,000 | ||||
| Gain on sale of investments | 86,000 | ||||
| Total revenues and gains | 710,000 | ||||
| Expenses and losses: | |||||
| Cost of goods sold | $ | 325,000 | |||
| Selling expense | 67,000 | ||||
| Administrative expense | 87,000 | ||||
| Interest expense | 16,000 | ||||
| Restructuring costs | 55,000 | ||||
| Income tax expense | 40,000 | ||||
| Total expenses and losses | 590,000 | ||||
| Net Income | $ | 120,000 | |||
| Earnings per share | $ | 1.20 | |||
Required:
Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
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