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The following information is taken from the accounting records of Crane Corporation, a Canadian...

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The following information is taken from the accounting records of Crane Corporation, a Canadian public company, for the year ended December 31, 2018.

Accounts receivable $89,000
Retained earnings, January 1, 2018 272,000
Loss on operation of discontinued operations (before tax) 100,000
Sales revenue 1,183,000
Cost of goods sold 728,000
Seeing expenses 133,000
Cash 62,000
Common shares (19,000 common shares outstanding) 190,000
Dividend revenue 17,600
Inventory 125,000
Unearned service revenue 3,600
Land 374,000
Interest expense 19,300
Administrative expenses 160,000
Notes payable (maturity 2023) 221,000
Accounts payable 61,200
Gain on sale of discontinued operations (before tax) 149,000
Depreciation expense 51,300
Loss on sale of equipment (before tax) 11,700

Crane Corporation is subject to a 20% Income tax rate.

Prepare a multiple-step income statement in good form for Crane Corporation (earnings per share Information is not required).

Income Statement:

Income Statement is one of the financial statements that being prepared by the company at each accounting period. It can be presented in two formats: Single Step and Multi-Step Income Statement. Income Statement shows the financial performance of the company during a given period.

Answer and Explanation:

Sales Revenue:
Total Sales $1,183,000
Net Sales Revenue $1,183,000
Less:
Cost of Goods Sold -728,000
Gross Profit $455,000
Operating Expenses
Selling Expenses: 133,000
Administrative Expenses: 160,000
Total Operating Expenses 293,000
Operating Income $162,000
Other Incomes and Expenses:
- Loss on Sale of Equipment -11,700
+ Gain on Sale of Operations of Discountinued 149,000
- Loss on Operations of Discountinued -100,000
- Depreciation Expense -51,300
- Interest Expense -19,300
Net Other Incomes and Expenses -33,300
Net Income $128,700


Learn more about this topic:

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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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