4. On December 31, 2016, Olly Co. listed the following items in its adjusted trial balance:

Loss from fire $8,000 General & administrative expenses $17,000

Interest revenue 2,500 Sales revenue 160,000

Selling expenses 14,000 Cost of goods sold 95,000

Loss on sale of

equipment 2,000

7,000 shares of common stock have been outstanding during the year and the income tax rate is 30% on all items of income. All amounts are shown pretax.

Required: Prepare a 2016 multi-step income statement.

5. During December 2016, Smith Co. decides to sell Division F. On December 31, 2016, the company classifies Division F as held for sale. On that date, the book values of Division Fs assets and liabilities are $950,000 and $600,000, respectively. Smith expects to sell division F in 2017 and estimates that the fair value of Division F is $250,000. During 2016, Division F earned revenues of $1,000,000 and incurred expenses of $1,300,000. Smith is subject to a 30% income tax rate.

Required: Prepare the results from discontinued operations section of Smiths income statement for 2016.

6. Major Manufacturing Co presents the following partial list of account balances, after adjustments, as of December 31, 2016:

Sales salaries expense $27,400 Sales personnel travel expenses $8,300

Miscellaneous administrative

expenses 3,000 Property taxes & insurance expense 9,000

Sales revenue 463,200 Depreciation expense: sales equipment 9,000

Interest revenue 3,200 Advertising expense 15,700

Office and Administrative

Salaries expense 30,000 Miscellaneous rent revenue 5,900

Delivery expense 11,700 Depreciation expense: buildings and office equipment 14,400

Loss on sale of equipment 4,100 Cost of goods sold 232,200

The following information is also available but not reflected in the preceding accounts:

a. The company sold Division E on August 1, 2016 for a pretax gain on the sale of $42,000. During 2016, Division E had incurred a pretax loss from operations of $16,000.

b. Major Co. had 200,000 shares of common stock outstanding during the year.

c. The tax rate was 25%

Required: Prepare a 2016 multi-step income statement for Major Manufacturing Co.