Duke Companys records show the following account balances at December 31, 2021: Sales revenue ................................................$15,000,000 Cost of
Question:
Duke Company’s records show the following account balances at December 31, 2021:
Sales revenue ................................................$15,000,000
Cost of goods sold ............................................9,000,000
General and administrative expense .............1,000,000
Selling expense ....................................................500,000
Interest expense ..................................................700,000
Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount.
1. $300,000 in restructuring costs were incurred in connection with plant closings.
2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual.
3. It was discovered that depreciation expense for 2020 was understated by $50,000 due to a mathematical error.
4. The company experienced a negative foreign currency translation adjustment of $200,000 and had an unrealized gain on debt securities of $180,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. Use a multiple-step format similar to the one in the Concept Review Exercise at the end of Part A of this chapter (excluding discontinued operations shown there).
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas