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Presented below is information that relates to Halifax Limited for 2020:

Accounts Payable 49,000

Accounts Receivable 78,000

Bond Payable600,000

Cash dividends declared on common shares34,000

Collections of credit sales$1,100,000

Cost of goods sold1,100,000

Equipment 85,000

Gain from transactions in foreign currencies (pre-tax)220,000

Inventory120,000

Loss on sale of equipment 350,000

Loss from early debt repayment 340,000

Loss resulting from calculation error on depreciation charge in 2019460,000

Other expenses120,000

Other revenues180,000

Proceeds from issue of Halifax common shares60,000

Retained earnings, January 1, 2020800,000

Sales1,900,000

Selling and administrative expenses290,000

Unrealized Gain FV-NI 20,000

Additional information to be included:

On September 1, 2020, Halifax sold one of its segments (product line) to Best Industries for a gain (pre-tax) of $550,000. During the period January 1 to August 31, the discontinued segment incurred an operating loss (pre-tax) of $480,000. This loss is not included in any of the numbers shown above.

Instructions

In good form, prepare a multiple-step income statement for 2020. Assume a 20% income tax rate and that 20,000 common shares were outstanding during the year. Include Earnings Per Share.

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