Exercise 4-2 Income statement format; single step and multiple step [LO4-1, 4-5]

Question

Exercise 4-2 Income statement format; single step and multiple step [LO4-1, 4-5] The following is a partial trial balance for the Green Star Corporation as of December 31, 2018: Account Title Sales revenue Interest revenue Gain on sale of investments Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Debits Credits 1,550,000 38,000 58,000 770,000 200,000 83,000 48,000 138,000 110,000 shares of common stock were outstanding throughout 2018. Required: 1. Prepare a single-step income statement for 2018, including EPS disclosures. 2. Prepare a multiple-step income statement for 2018, including EPS disclosures.

Explanation / Answer

Solution 1:

Solution 2:

Green Star Corporation Single step Income Statement For the year ended December 31, 2018 Particulars Amount Revenues and Gains: Sales revenue $1,550,000.00 Interest revenue $38,000.00 Gain on sale of investment $58,000.00 Total revenues and gain $1,646,000.00 Expenses and losses: Cost of goods sold $770,000.00 Selling Expenses $200,000.00 General and administrative Expenses $83,000.00 Interest Expense $48,000.00 Total expenses and losses $1,101,000.00 Income before income taxes $545,000.00 Income tax expense $138,000.00 Net Income $407,000.00 Nos of common stock outstanding 110000 Earning per share $3.70

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