Exercises

$5-61$

$E5-8$ Cost $of$ Goods Sold, Income Statement, and Statement $of$ Comprehensive Income Gaskin Company derives

$LO5\mathrm{.}4,$

LO $5\mathrm{.}7$

the following items from its adjusted trial balance as of December $31,2019$:

Sales

Purchases returns

Gain on sale of equipment $($pretax$)$

Freight$-$in

$$139,000$ Interest revenue

Selling expenses

Unrealized increase in fair value of available$-$for$-$sale securities

$5,200$

$3,800$

$3,400$

$15,600$

$2,400$

Purchases discounts taken

Inventory, January $1,2019$

Purchases

Administrative expenses

Loss from truck accident $($pretax$)$

S $3,300$

$2,700$

$12,100$

$89,700$

$24,200$

$6,500$

The following additional information is also available. The December $31,2019,$ ending inventory is $$14,700.$ During $2019,4,200$ shares of common stock were outstanding the entire year. The income tax rate is $30\%$ on all items of income.

Required:

As a supporting document for Requirements $2$ and $3,$ prepare a separate schedule for Gaskin's cost of goods sold.

Prepare a $2019$ single$-$step income statement.

Prepare a $2019$ multiple$-$step income statement.

Prepare a $2019$ statement of comprehensive income.