The following information is taken from the accounting records of Crane Corporation, a Canadian public company, for the year ended December 31, 2018.
|Retained earnings, January 1, 2018||272,000|
|Loss on operation of discontinued operations (before tax)||100,000|
|Cost of goods sold||728,000|
|Common shares (19,000 common shares outstanding)||190,000|
|Unearned service revenue||3,600|
|Notes payable (maturity 2023)||221,000|
|Gain on sale of discontinued operations (before tax)||149,000|
|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 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:
|Net Sales Revenue||$1,183,000|
|Cost of Goods Sold||-728,000|
|Total Operating Expenses||293,000|
|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|
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2