Intermediate Accounting-Chapter 5- P5-13-Net Income and comprehensive Income-At the beginning of 2016, JR Company's Shareholders' equity wasas follows: Common Stock, $5 par-35,000

Additional paid in capital-$49,000

Retained earnings-$63,000-

During 2016, the following events and transactions occured:

1. JR recognized sales revenue of $108,000. It incurred cost of goods sold of $62,000 and operating expenses of $12,000

2. JR issued 1,000 shares of its $5 par common stock for $14 per share

3. JR invested $30,000 in available for sale securites. At the end of the year, the securities had a fair value of $35,000

4. JR paid dividends of $6,000

The income tax rate on all items of income is 30%

Required:

1. Prepare a 2016 income statement for JR which includes net income and comprehensive income (ignore earnings per share)

2. Prepare ( a) a 2016 income statement (ignore earnings per share) and (b) a separate 2016 statment of comprehensive income.