the trial balance of lakewood inc. included the following accounts as of Decembe
ID: 2422274 • Letter: T
Question
the trial balance of lakewood inc. included the following accounts as of December 31,2014
Lakewood Inc had 100,000 shares of stock and outstanding throughout the year. Income tax expense has not yet been accrued. The tax rate is 30%
Prepare a single-step income statement with basic earnings per share disclosure.
Prepare a multi step income statement with earnings per share disclosure.
sales rev 1,800,000 interest rev 80,000 gain on sale of investments 50,000 loss on expropriated foreign assets 300,000 cost of goods sold 1,100,000 selling expenses 220,000 w/off of obsolete equip 30,000 restructuring costs 150,000 interest expense 40,000 general and admin exp 50,000Explanation / Answer
Revenue
sales rev
18,00,000
interest rev
80,000
gain on sale of investments
50,000
Total revenue
19,30,000
Expenses
loss on expropriated foreign assets
3,00,000
cost of goods sold
11,00,000
selling expenses
2,20,000
w/off of obsolete equip
30,000
restructuring costs
1,50,000
interest expense
40,000
general and admin exp
50,000
Total expenses
18,90,000
Income before tax
40,000
Tax @30%
12000
Net Income
28,000
No of share Outstanding
100000
Basic earning per share
0.28
Revenue
sales rev
18,00,000
interest rev
80,000
gain on sale of investments
50,000
Total revenue
19,30,000
Expenses
loss on expropriated foreign assets
3,00,000
cost of goods sold
11,00,000
selling expenses
2,20,000
w/off of obsolete equip
30,000
restructuring costs
1,50,000
interest expense
40,000
general and admin exp
50,000
Total expenses
18,90,000
Income before tax
40,000
Tax @30%
12000
Net Income
28,000
No of share Outstanding
100000
Basic earning per share
0.28
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