eBook

Show Me How

You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the green Excel icon in the upper left hand corner of the activity. Simple Income Statement

The following are selected items derived from Dibb Company's adjusted trial balance on December 31, 2016:

Loss on sale of land	$5,000
Cost of goods sold	$130,000
Sales (net)	$198,000
Operating expenses	45,000

Twelve thousand shares of common stock were outstanding the entire year.

Required:

Assuming a 30% income tax rate on all items of income, prepare a 2016 income statement for Dibb's Company using a multiple-step format. Round earnings per share computations to two decimal places.

DIBB COMPANY Income Statement (Multiple-Step) For Year Ended December 31, 2016

Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesOperating incomeSales (net)	$- Select -
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesOperating incomeSales (net)	- Select -
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesOperating incomeSales (net)	$- Select -
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesSales (net)	- Select -
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating incomeSales (net)	$- Select -
Other items
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating incomeOperating expensesSales (net)	- Select -
Income before income tax	$fill in the blank c7a558081fad04b_13
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesOperating incomeSales (net)	- Select -
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesOperating incomeSales (net)	$- Select -
Components of Income	EPS
Net incomeNet loss	$- Select -

Assuming a 30% income tax rate on all items of income, prepare a 2016 income statement for Dibb's Company using a single-step format. Round earnings per share computations to two decimal places.

DIBB COMPANY Income Statement (Single-Step) For Year Ended December 31, 2016

Revenues
Cost of goods soldGross profitIncome tax expenseLoss on sale of landNet incomeOperating expensesOperating incomeSales (net)		$- Select -
Expenses
Cost of goods soldGross profitNet incomeOperating incomeSales (net)	$- Select -
Gross profitNet incomeOperating incomeOperating expensesSales (net)	- Select -
Gross profitLoss on sale of landNet incomeOperating incomeSales (net)	- Select -
Gross profitIncome tax expenseNet incomeOperating incomeSales (net)	- Select -
Total expenses		fill in the blank 151aee01bfae07e_11
Sales (net)Cost of goods soldGross profitOperating expensesOperating incomeLoss on sale of landIncome tax expenseNet incomeNet loss		$- Select -
Components of Income		EPS
Net incomeNet loss		$- Select -