Various Reporting Formats
The following information was taken from the records of Roland Carlson Inc. for the year 2007. Income tax applicable to income from continuing operations $187,000; income tax applicable to loss on discontinued operations $25,500; income tax applicable to extraordinary gain $32,300; income tax applicable to extraordinary loss $20,400; and unrealized holding gain on available-for-sale securities $15,000.
|
Extraordinary gain |
95,000 |
Cash dividends declared |
150,000 |
|
Loss on discontinued operations |
75,000 |
Retained earnings January 1, 2010 |
600,000 |
|
Administrative expenses |
240,000 |
Cost of goods sold |
850,000 |
|
Rent revenue |
40,000 |
Selling expenses |
300,000 |
|
Extraordinary loss |
60,000 |
Sales |
1,900,000 |
Shares outstanding during 2007 were 100,000.
Instructions
(a) Prepare a single-step income statement for 2007.
(b) Prepare a retained earnings statement for 2007.
(c) Show how comprehensive income is reported using the second income statement format.