The following incorrect income statement was prepared by the accountant of the Axel Corporation:

Required:Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. Be sure to include appropriate headings and subtotal titles. An example of a multiple-step income statement can be found in Illustration 4?4 of this chapters.

Transcribed Image Text:

AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: $592,000 Sales revenue Interest revenue 32,000 Gain on sale of investments 86,000 Total revenues and gains 710,000 Expenses and losses: $325,000 Cost of goods sold Selling expense 67,000 Administrative expense 87,000 Interest expense 16,000 Restructuring costs 55,000 40,000 Income tax expense Total expenses and losses 590,000 $120,000 Net Income Earnings per share 1.20 %24