Intermediate Accounting I
Prepare a multiple step income statement and a comprehensive income statement based on the following data:
Sales $1,700,000
Beginning inventory 80,000
Ending inventory 70,000
Dividends paid 65,000
Freight in 40,000
Freight out 15,000
Bad debt expense 18,000
Allowance for doubtful accounts 55,000
Purchases 800,000
Purchase returns 60,000
Purchase discounts 12,000
Sales returns 30,000
Sales discounts 13,000
Unrealized loss- available for sale securities 22,000
Loss from sale of available for sale securities 25,000
Loss from hurricane damage 50,000
Loss from discontinued operations 125,000
Unrealized gain- trading securities 35,000
Salary Expense 300,000
Rent expense 120,000
Depreciation expense 100,000
Prepaid insurance 62,000
Unearned rent revenue 50,000
Interest revenue 10,000
Income tax rate 20%
