Exercise 4-3 (Algo) Income statement format; single step and multiple step [LO4-1, 4-3, 4-5) The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits Account Title 2,800,000 89,000 Sales revenue Interest revenue 27,000 1,280,000 290,000 390,000 195,000 88,000 Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense There were 200,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. T income tax rate is 25%. Required: 1. Prepare a single-step income statement for 2021, including EPS disclosures. 2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

Exercise 4-3 (Algo) Income statement format; single step and multiple step [LO4-1, 4-3, 4-5) The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Debits Credits Account Title 2,800,000 89,000 Sales revenue Interest revenue 27,000 1,280,000 290,000 390,000 195,000 88,000 Loss on sale of investments Cost of goods sold Loss on inventory write-down (obsolescence) Selling expense General and administrative expense Interest expense There were 200,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. T income tax rate is 25%. Required: 1. Prepare a single-step income statement for 2021, including EPS disclosures. 2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
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