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Intermediate Accounting: Reporting...
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Intermediate Accounting: Reporting...
Complex Income Statement The following items were derived from Woodbine Circle Corporation’s adjusted trial balance on December 31, 2019:
Other financial data for the year ended December 31, 2019:
Required:
Using the multiple-step format, prepare a formal income statement for Woodbine for the year ended December 31, 2019, together with the appropriate supporting schedules. All income taxes should be appropriately shown.
Prepare an income statement with appropriate supporting schedules of Company W for the year ended December 31, 2019; use the multiple-step format.
Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.
Prepare an income statement with appropriate supporting schedules of Company W for the year ended December 31, 2019; use the multiple-step format:
| Company W | ||
| Income Statement | ||
| For the Year Ended December 31, 2019 | ||
| Particulars | Amounts ($) |
Amounts ($) |
| Sales | Â | 10,100,000 |
| Less: Cost of sales | Â | (6,200,000) |
| Gross profit |  | 3,900,000 |
| Less: Administrative expenses | Â | (2,000,000) |
| Â Â Â Â Operating income | Â | 1,900,000 |
| Other expense: | Â | |
| Add: Gain on sale of land |  | 300,000 |
| Less: Interest expense | Â | (210,000) |
| Â Â Â Â Income from continuing operations before income taxes | Â | 1,990,000 |
| Less: Income taxes (Schedule 1) | Â | (796,000) |
| Â Â Â Â Income from continuing operations | Â | 1,194,000 |
| Discontinued operations (Schedule 2) | Â | |
| Operating income from discontinued AL Division | Â 396,000 | |
| Loss on sale of AL Division (2) | Â (150,000) | 246,000 |
| Net income (a) |  | 1,440,000 |
| Number of common shares (b) | Â | 1,000,000 |
| Earnings per Common Share | Â | $1 |
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