Duke Company’s records show the following account balances at December 31, 2021: Sales revenue $ 17,600,000 Cost of goods sold 10,300,000 General and administrative expense 1,130,000 Selling expense 630,000 Interest expense 830,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $430,000 in restructuring costs were incurred in connection with plant closings. Inventory costing $530,000 was written off as obsolete. Material losses of this type are considered to be unusual. It was discovered that depreciation expense for 2020 was understated by $63,000 due to a mathematical error. The company experienced a negative foreign currency translation adjustment of $330,000 and had an unrealized gain on debt securities of $310,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures.
Duke Company’s records show the following account balances at December 31, 2021: Sales revenue $ 17,600,000 Cost of goods sold 10,300,000 General and administrative expense 1,130,000 Selling expense 630,000 Interest expense 830,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $430,000 in restructuring costs were incurred in connection with plant closings. Inventory costing $530,000 was written off as obsolete. Material losses of this type are considered to be unusual. It was discovered that depreciation expense for 2020 was understated by $63,000 due to a mathematical error. The company experienced a negative foreign currency translation adjustment of $330,000 and had an unrealized gain on debt securities of $310,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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Question
Duke Company’s records show the following account balances at December 31, 2021:
| Sales revenue | $ | 17,600,000 |
| Cost of goods sold | 10,300,000 | |
| General and administrative expense | 1,130,000 | |
| Selling expense | 630,000 | |
| Interest expense | 830,000 | |
Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount.
- $430,000 in restructuring costs were incurred in connection with plant closings.
- Inventory costing $530,000 was written off as obsolete. Material losses of this type are considered to be unusual.
- It was discovered that
depreciation expense for 2020 was understated by $63,000 due to a mathematical error. - The company experienced a negative foreign currency translation adjustment of $330,000 and had an unrealized gain on debt securities of $310,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures.
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