Question:
The following is a partial trial balance for General Lighting Corporation as of December 31, 2013:
300,000 shares of common stock were outstanding throughout 2013. Income tax expense has not yet been
accrued. The income tax rate is 40%.
Required:
1. Prepare a single-step income statement for 2013, including EPS disclosures.
2. Prepare a multiple-step income statement for 2013, including EPS disclosures.
Answer:
Requirement 1
GENERAL LIGHTING CORPORATION
Income Statement
For the Year Ended December 31, 2013
Revenues and gains:
Sales ..................................................................................... $2,350,000
The following is a partial trial balance for General Lighting Corporation as of December 31, 2013:
300,000 shares of common stock were outstanding throughout 2013. Income tax expense has not yet been
accrued. The income tax rate is 40%.
Required:
1. Prepare a single-step income statement for 2013, including EPS disclosures.
2. Prepare a multiple-step income statement for 2013, including EPS disclosures.
Answer:
Requirement 1
GENERAL LIGHTING CORPORATION
Income Statement
For the Year Ended December 31, 2013
Revenues and gains:
Sales ..................................................................................... $2,350,000
