The following is a partial trial balance for General Lighting Corporation as of
ID: 2340576 • Letter: T
Question
The following is a partial trial balance for General Lighting Corporation as of December 31, 2018: Account Title Sales revenue Interest revenue Loss on sale of investments Cost of goods sold Loss from write-down of inventory due to obsolescence Selling expenses General and administrative expenses Interest expense Debits Credits 3,898,8ee 93,900 29,00 33,90 215,900 1,328,98e 92,880 300,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40%. Requlrec 1. Prepare a single-step income statement for 2018, including EPS disclosures. 2. Prepare a multiple-step income statement for 2018, including EPS disclosures. Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare a single-step income statement for 2018, including EPS disclosures. (Round EPS answer to 2 decimal places.) Income Statement For the Year Ended 31, 2018 Earnings per shareExplanation / Answer
General Lighting Corporation
Income statement
For the year ended December 31 2018
Revenues and gains:
$
Sales Revenue
3000000
Interest revenue
93000
Total revenue and gains
3093000
Expenses and losses
Cost of goods sold
1320000
Selling expenses
430000
General and administration expenses
215000
Interst expense
92000
Loss on sale of investment
29000
Loss from inventory written down
330000
Total expenses and losses
2416000
Income before taxes and extraordinary item
677000
Income tax expense
270800
Net income
406200
Earnings per share:
Income before tax
2.256667
Tax expense
0.902667
Net income
1.354
*income components divided by 300000 shares
General Lighting Corporation
Income statement
For the year ended December 31 2018
Multistep income statement
Revenues and gains:
$
$
Sales Revenue
3000000
Cost of goods sold
1320000
Gross profit
1680000
Operating expenses:
Selling expenses
430000
General and administration expenses
215000
Loss from inventory written down
330000
Total Operating expenses
975000
Operating income
705000
Other income/ Expense:
Interest revenue
93000
loss on sale of investments
-29000
Interest expense
-92000
Total other income
-28000
Income before taxes
677000
Tax expense at 40%
270800
Net income
406200
Earnings per share:
Income before tax
2.256667
Tax expense
0.902667
Net income
1.354
*income components divided by 300000 shares
General Lighting Corporation
Income statement
For the year ended December 31 2018
Revenues and gains:
$
Sales Revenue
3000000
Interest revenue
93000
Total revenue and gains
3093000
Expenses and losses
Cost of goods sold
1320000
Selling expenses
430000
General and administration expenses
215000
Interst expense
92000
Loss on sale of investment
29000
Loss from inventory written down
330000
Total expenses and losses
2416000
Income before taxes and extraordinary item
677000
Income tax expense
270800
Net income
406200
Earnings per share:
Income before tax
2.256667
Tax expense
0.902667
Net income
1.354
*income components divided by 300000 shares
General Lighting Corporation
Income statement
For the year ended December 31 2018
Multistep income statement
Revenues and gains:
$
$
Sales Revenue
3000000
Cost of goods sold
1320000
Gross profit
1680000
Operating expenses:
Selling expenses
430000
General and administration expenses
215000
Loss from inventory written down
330000
Total Operating expenses
975000
Operating income
705000
Other income/ Expense:
Interest revenue
93000
loss on sale of investments
-29000
Interest expense
-92000
Total other income
-28000
Income before taxes
677000
Tax expense at 40%
270800
Net income
406200
Earnings per share:
Income before tax
2.256667
Tax expense
0.902667
Net income
1.354
*income components divided by 300000 shares
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