Chapter 5, Problem 11P

Net Income and Comprehensive Income At the beginning of 2019, JR Company’s shareholders’ equity was as follows:

During 2019, the following events and transactions occurred:

1. 1. JR recognized sales revenues of $108,000. It incurred cost of goods sold of $62,000 and operating expenses of $12,000,
2. 2. JR issued 1,000 shares of its $5 par common stock for $14 per share.
3. 3. JR invested $30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of $35,000.
4. 4. JR paid dividends of $6,000.

The income tax rate on all items of income is 30%.

Required:

1. 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share).
2. 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.