Concept explainers
Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business under separate head. In different steps of the multi-step income statement, principal operating activities are reported from recording of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.
Comprehensive Income Statement: Comprehensive income statement refers to the multi-step income statement that records the gains, and losses from operating activities, and the non-operating activities of the business.
To Prepare: The multi-step income statement of Corporation B for the year ended December 31, 2017.
The comprehensive income statement of Corporation B for the year ended December 31, 2017.
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
- The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forwardThe income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Includes both state and federal taxes. Refer to the information for Santiago Systems above. Required: Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)arrow_forwardJock (LTD) is a manufacturer of Stationery. The Following information is given regarding Jock Ltd for 2021 and 2022 Income tax Expense for 2021 is R9 565 and for 2022 is R8 575 The Income tax for 2021 according to the final assessment for SARS is R9 800.00 Total Dividends declared for 2021 is R5 000. The dividends tax rate is 15% Prepare the journal entries for the year ended 31 December 2021 and 2022 (Include journal narrations)arrow_forward
- A company is preparing its financial statements for the year ending 31 March 2020. The initial trial balance has the following figures relating to tax Income tax payable at 1 April 2019 £25,325 Icome tax paid during the year ended 31 March 2020 £15,225 The estimated income tax liability for the year ended 31 March 2020 is £16,650. What is the income tax figure for inclusion in the company's statement of profit or loss for the year ended 31 March 2020?arrow_forwardBrush Company has the following income before income tax and estimated effective annual income tax rates for the first three quarters of 2019.(Photo)Required:What should be Brush company estimated income for "First" quarter income statement? Select one:a. $54,600b. $39,000c. $46,800d. None of the other pointsarrow_forwardYou are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $ 917, depreciation expenses $ 85, costs of goods sold $ 399, and interest expenses $ 62. At the end of the year, current assets were $ 150 and current liabilities were $ 111. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sandhill Plumbing CompanyIncome Statementchoose the accounting period Amount select an income statement item $ enter a dollar amount select an income statement item enter a dollar amount select a summarizing line for the first part $ enter a total amount for the first part select an income statement item enter a dollar amount select a summarizing line for the second part $ enter a total amount for the second part select an income statement item enter a dollar amount select a summarizing line for the…arrow_forward
- You are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $ 917, depreciation expenses $ 85, costs of goods sold $ 399, and interest expenses $ 62. At the end of the year, current assets were $ 150 and current liabilities were $ 111. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25) Sandhill Plumbing CompanyIncome Statementchoose the accounting period Amount select an income statement item $ enter a dollar amount select an income statement item enter a dollar amount select a summarizing line for the first part $ enter a total amount for the first part select an income statement item enter a dollar amount select a summarizing line for the second part $ enter a total amount for the second part select an income statement item enter a dollar amount select a summarizing line for the…arrow_forwardGrotto Ltd has already sent $19,600 to the ATO in respect to PAYG, and this figure shown as a debit in the Income Tax Expense account. The Profit and Loss account is then prepared and the Net Profit (before tax) is found to be $75,000. The current company tax rate is 30%. Required: Prepare general journal entries for the following Correct the Income Tax Expense account Close the Income Tax Expense account Transfer Net Profit (after tax) to Retained Earningsarrow_forwardDiamond, Inc. had the following Income Statement at the end of the year. Compute Diamond's federal income tax expense given the tax rate of 21%. What is the company's net income?arrow_forward
- The following information is available for Bramble Corporation for the year ended December 31, 2020: cost of goods sold $225,000, sales revenue $477,000, other revenues and gains $51,000, and operating expenses $73,000.Assuming a corporate tax rate of 25%, prepare an income statement for the company. $ $arrow_forwardThe trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2018,included the following income accounts:Account Title Debits CreditsSales revenue 2,300,000Cost of goods sold 1,400,000Selling and administrative expenses 420,000Interest expense 40,000Unrealized holding gains on investment securities 80,000The trial balance does not include the accrual for income taxes. Lindor’s income tax rate is 30%. One millionshares of common stock were outstanding throughout 2018.Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2018, including appropriateEPS disclosures.arrow_forwardDuring 2021, Jerry Inc. has the following account balances in Income Statement: Sales P 1,630,245, Cost of Sales P 646,788, Selling Expense P 235,500, Administrative Expense P 114,766, Other Expense P 57,146, Tax Expense P 200,400 and Other Revenue P 65,810. How much is the net income? a. P 414,454b. P 414,455c. P 441,455d. P 441,445arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning