Net Income and Comprehensive Income At the beginning of 2007, JR Company’s stockholders’ equity was as follows:
|
Common stock, $5 par |
$35,000 |
|
Additional paid in capital |
49,000 |
|
Retained earnings |
63,000 |
During 2007, the following events and transactions occurred:
1. The company earned sales revenues of $108,000. It incurred cost of goods sold of $62,000 and operating expenses of $12,000.
2. The company issued 1,000 shares of its $5 par common stock for $14 per share.
3. The company invested $30,000 in available for sale securities. At the end of the year, the securities had a market value of $35,000.
4. The company paid dividends of $6,000. The income tax rate on all items of income is 30%.
Required
1. Prepare a 2007 income statement for JR Company which includes comprehensive income (ignore earnings per share).
2. Instead, prepare (a) a 2007 income statement (ignore earnings per share), and (b) a 2007 statement of comprehensive income.
3. Instead, prepare (a) a 2007 income statement (ignore earnings per share), and (b) a 2007 statement of changes in stockholders’ equity that includes comprehensive income.