$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: Sales $142,000 Interest revenue Purchases returns 5,200 Purchases discounts taken Gain on sale of equipment (pretax) 3,800 Inventory, January 1, 2019 Freight-in 3,400 Purchases Selling expenses 15,600 Administrative expenses Unrealized increase in fair value of Loss from truck accident (pretax) 2,400 available-for-sale securities The following additional information is also available. 1. The December 31, 2019, ending inventory is $14,700. 2. During 2019, 4,200 shares of common stock were outstanding the entire year. 3. The income tax rate is 30% on all items of income. 24,200 6,500 1. Prepare a separate schedule for Gaskin's cost of goods sold. GASKIN COMPANY Schedule 1: Cost of Goods Sold For Year Ended December 31, 2019 Inventory, 1/1/2019 12,800 Purchases 89,700 3,400 93,100 Add: Freight-in Cost of purchases Less: Purchases returns Less: Purchases discounts taken 5,200 2,700 Net purchases 85,200 Cost of goods available for sale Less: Inventory, 12/31/2019 Cost of goods sold 14,700 2. Prepare a 2019 single-step income statement. Disregard EPS disclosure. GASKIN COMPANY Income Statement (Single-Step) For Year Ended December 31, 2019 Revenues Sales 142,000 Interest revenue 3,300 Gain on sale of equipment 3,800 149,100 Total revenues Expenses Cost of goods sold Selling expenses Administrative expenses 15,600 24,200 Loss from truck accident 6,500 Income tax expense Total expenses Net income 3. Prepare a 2019 multiple-step income statement. Disregard EPS disclosure. GASKIN COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Sales 142,000 Cost of goods sold Gross profit Operating expenses Selling expenses 15,600 Administrative expenses 24,200 39,800 Total operating expenses Operating income Other items Gain on sale of equipment Loss from truck accident Interest revenue 3,800 6,500 3,300 600 Income before income tax Income tax expense Net income 4. Prepare a 2019 statement of comprehensive income. GASKIN COMPANY Statement of Comprehensive Income For Year Ended December 31, 2019 Net income Other comprehensive income: Unrealized increase in value of available-for-sale securities (net of income taxes) Comprehensive income