(Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale securities (net of tax) $15,000. Gain on sale of equipment $ 95,000 Cash dividends declared $ 150,000 Loss on discontinued operations 75,000 Retained earnings January 1, 2017 600,000 Administrative expenses 240,000 Cost of goods sold 850,000 Rent revenue 40,000 Selling expenses 300,000 Loss on write-down of inventory 60,000 Sales revenue 1,900,000 Shares outstanding during 2017 were 100,000.Instructions(a) Prepare a single-step income statement.(b) Prepare a comprehensive income statement for 2017, using the two statement format.(c) Prepare a retained earnings statement for 2017.
(Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale securities (net of tax) $15,000. Gain on sale of equipment $ 95,000 Cash dividends declared $ 150,000 Loss on discontinued operations 75,000 Retained earnings January 1, 2017 600,000 Administrative expenses 240,000 Cost of goods sold 850,000 Rent revenue 40,000 Selling expenses 300,000 Loss on write-down of inventory 60,000 Sales revenue 1,900,000 Shares outstanding during 2017 were 100,000.Instructions(a) Prepare a single-step income statement.(b) Prepare a comprehensive income statement for 2017, using the two statement format.(c) Prepare a retained earnings statement for 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income from continuing operations $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale securities (net of tax) $15,000.
| Gain on sale of equipment | $ 95,000 | Cash dividends declared | $ 150,000 |
| Loss on discontinued operations | 75,000 | 600,000 | |
| Administrative expenses | 240,000 | Cost of goods sold | 850,000 |
| Rent revenue | 40,000 | Selling expenses | 300,000 |
| Loss on write-down of inventory | 60,000 | Sales revenue | 1,900,000 |
Shares outstanding during 2017 were 100,000.
Instructions
(a) Prepare a single-step income statement.
(b) Prepare a comprehensive income statement for 2017, using the two statement format.
(c) Prepare a retained earnings statement for 2017.
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