^--The following information was taken from the records of Novak Inc. for the year 2020: Income tax applicable to income from continuing operations $239,360; income tax applicable to loss on discontinued operations $32,640, and unrealized holding gain on available-for-sale securities (net of tax) $19,200.Gain on sale of equipment $121,600 Cash dividends declared $192,000Loss on discontinued operations 96,000 Retained earnings January 1, 2020 3,360,000Administrative expenses 307,200 Cost of goods sold 1,088,000Rent revenue 51,200 Selling expenses 384,000Loss on write-down of inventory 76,800 Sales Revenue 2,432,000Shares outstanding during 2020 were 100,000.Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48.) $ Part 2Prepare a comprehensive income statement for 2020, using the two statement format.NOVAK INC.Comprehensive Income StatementeTextbook and MediaList of Accounts%24%24>>> Part 3Prepare a retained earnings statement for 2020. (List items that increase retained earnings first.)NOVAK INC.Retained Earnings StatementeTextbook and Media%24%24>>..>>

Income statement is prepared to determine the profit or loss by deducting expenses from revenues. It…

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.8MBA: Common-sized income statements Using your answers to MBA 2-6 and MBA 2-7, compare and analyze Year 2...

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The following information was taken from the records of Novak Inc. for the year 2020: Income tax applicable to income from continuing operations $239,360; income tax applicable to loss on discontinued operations $32,640, and unrealized holding gain on available-for-sale securities (net of tax) $19,200.

Gain on sale of equipment	$121,600	Cash dividends declared	$192,000
Loss on discontinued operations	96,000	Retained earnings January 1, 2020	3,360,000
Administrative expenses	307,200	Cost of goods sold	1,088,000
Rent revenue	51,200	Selling expenses	384,000
Loss on write-down of inventory	76,800	Sales Revenue	2,432,000

Shares outstanding during 2020 were 100,000.

Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48.)



























		$

Part 2
Prepare a comprehensive income statement for 2020, using the two statement format.
NOVAK INC.
Comprehensive Income Statement
eTextbook and Media
List of Accounts
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Part 3
Prepare a retained earnings statement for 2020. (List items that increase retained earnings first.)
NOVAK INC.
Retained Earnings Statement
eTextbook and Media
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>
..
>
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