Summary Business Accounting

Question:

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2013, the end of the

company’s fiscal year, contained the following income statement items ($ in millions): sales revenue,

$2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105;

interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been accrued.

The income tax rate is 40%. Prepare a single-step income statement for 2013. Ignore EPS disclosures.



Answer:




PACIFIC SCIENTIFIC CORPORATION

Income Statement

For the Year Ended December 31, 2013

($ in millions)

Revenues and gains:

Sales ..................................................................................... $2,106

Gain on sale of investments .................................................. 45

Total revenues and gains ................................................... 2,151



Expenses and losses:

Cost of goods sold ................................................................ $1,240

Selling................................................................................... 126

General and administrative.................................................... 105

Interest.................................................................................. 35

Total expenses and losses .................................................. 1,506