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

Accounts Payable ........................................................................................................ 49,000

Accounts Receivable .................................................................................................... 78,000

Bond Payable....................................................................................................... ..... 600,000

Cash dividends declared on common shares.................................................................... 34,000

Collections of credit sales....................................................................................... $1,100,000

Cost of goods sold.................................................................................................... 1,100,000

Equipment ................................................................................................................... 85,000

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

Inventory.................................................................................................................... 120,000

Loss on sale of equipment .......................................................................................... 350,000

Loss from early debt repayment .................................................................................. 340,000

Loss resulting from calculation error on depreciation charge in 2019.............................. 460,000

Other expenses........................................................................................................... 120,000

Other revenues............................................................................................................ 180,000

Proceeds from issue of Halifax common shares............................................................... 60,000

Retained earnings, January 1, 2020.............................................................................. 800,000

Sales........................................................................................................................ 1,900,000

Selling and administrative expenses............................................................................. 290,000

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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