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Exercise 4-3 (Static) Income statement format; single step and multiple step [LO4-1, 4-3, 4-5] The...

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Accounting

Exercise 4-3 (Static) Income statement format; single step and multiple step [LO4-1, 4-3, 4-5]

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:

Account Title Debits Credits
Sales revenue 2,350,000
Interest revenue 80,000
Loss on sale of investments 22,500
Cost of goods sold 1,200,300
Loss on inventory write-down (obsolescence) 200,000
Selling expense 300,000
General and administrative expense 150,000
Interest expense 90,000

There were 160,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.

Required:

  1. Prepare a single-step income statement for 2021, including EPS disclosures.

  2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

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