Reporting an Income Statement with Earnings per Share

Romney's Marketing Company has the following adjusted trial balance at December 31, 2012. No dividends were declared. However, 500 shares issued at the end of the year for $3,000 are included below:

Prepare a multi-step income statement in good form for 2012. Include earnings pershare.

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Debit Credit $ 1,500 Cash Accounts receivable 2,200 Interest receivable 100 Prepaid insurance Notes receivable (long-term) Equipment Accumulated depreciation Accounts payable Accrued expenses payable Income taxes payable 1,600 2,800 15,000 $ 3,000 2,400 3,920 2,700 Unearned rent revenue 500 Contributed capital (800 shares) Retained earnings 3,700 2,000 Sales revenue 37.650 Interest revenue 100 Rent revenue 750 Wages expense Depreciation expense Utilities expense 19,000 1,800 320 Insurance expense 700 9,000 Rent expense Income tax expense 2,700 $56,720 $56,720 Total