multiple step income statement

Presented below is information for TT Corporation, a public company, for Year 8: Retained earnings, January 1, Year 8 Sales Selling expenses Cost of goods sold Notes payable, 10% Interest expense Prepaid insurance Unearned service revenue Administrative expenses Loss on sale of a capital asset Gain from transactions in foreign currencies Preferred shares, $1, non-cumulative, 10,000 issued and outstanding Common shares, 30,000 issued and outstanding 700,000 1.650.000 180,000 1,000,000 110,000 120,000 9,500 56,000 92,000 140,000 195.000 Additional information: 1. On January 1, Year 8, TT Corp. paid for two-year insurance for the administrative offices. No adjusting journal entry has been made. Aantabar1 VTT od licadastladuto e 616 PM 6/29/2020 E JUURI SITIUS, SU, UUU issued and outstanding Additional information: 1. On January 1, Year 8, TT Corp. paid for two-year insurance for the administrative offices. No adjusting journal entry has been made. 2. On September 1, Year 8, TT Corp. sold one of its segments (product line) to Best Industries for $2,100,000. The book value of the sold assets was $1,500,000. This sale is not included in the numbers shown above. During the period January 1 to August 31, this discontinued segment incurred operating losses of $500,000. This loss is not included in the numbers shown above. This segment met the definition of a component. 3. A long-term investment in bonds was reported on the December 31, Year 8 balance sheet at its cost of $125,000. This investment is accounted for using the fair value through other comprehensive income model. On December 31, Year 8, its fair value was $100,000 4. Interest expense for the notes payable has not yet be included in the numbers shown above. The note payable was issued July 1, Year 8 d 616 PM 6/21/2020 3. A long-term investment in bonds was reported on the December 31, Year 8 balance sheet at its cost of $125,000. This investment is accounted for using the fair value through other comprehensive income model. On December 31, Year 8, its fair value was $100,000 4. Interest expense for the notes payable has not yet be included in the numbers shown above. The note payable was issued July 1, Year 8 5. Early in Year 8, TT Corp. discovered the accountant missed recording depreciation expense of $100,000 in Year 7 year-end adjusting journal entries. 6. Total cash dividends of $45,000 were declared in Year 8. TT corporation year end is December 31 and has a 25% tax rate. Required: a) Prepare a multiple-step Statement of Comprehensive Income for Year 8 (round to the nearest dollar). Calculate all three (3) basic Earnings per Share (round to two decimal places) (17 marks). b) Prepare the column for Retained Earnings on the Statement of Changes in Equity for Year 8 (4 marks). 61771 Presented below is information for TT Corporation, a public company, for Year 8: Retained earnings, January 1, Year 8 Sales Selling expenses Cost of goods sold Notes payable, 10% Interest expense Prepaid insurance Unearned service revenue Administrative expenses Loss on sale of a capital asset Gain from transactions in foreign currencies Preferred shares, $1, non-cumulative, 10,000 issued and outstanding Common shares, 30,000 issued and outstanding 700,000 1.650.000 180,000 1,000,000 110,000 120,000 9,500 56,000 92,000 140,000 195.000 Additional information: 1. On January 1, Year 8, TT Corp. paid for two-year insurance for the administrative offices. No adjusting journal entry has been made. Aantabar1 VTT od licadastladuto e 616 PM 6/29/2020 E JUURI SITIUS, SU, UUU issued and outstanding Additional information: 1. On January 1, Year 8, TT Corp. paid for two-year insurance for the administrative offices. No adjusting journal entry has been made. 2. On September 1, Year 8, TT Corp. sold one of its segments (product line) to Best Industries for $2,100,000. The book value of the sold assets was $1,500,000. This sale is not included in the numbers shown above. During the period January 1 to August 31, this discontinued segment incurred operating losses of $500,000. This loss is not included in the numbers shown above. This segment met the definition of a component. 3. A long-term investment in bonds was reported on the December 31, Year 8 balance sheet at its cost of $125,000. This investment is accounted for using the fair value through other comprehensive income model. On December 31, Year 8, its fair value was $100,000 4. Interest expense for the notes payable has not yet be included in the numbers shown above. The note payable was issued July 1, Year 8 d 616 PM 6/21/2020 3. A long-term investment in bonds was reported on the December 31, Year 8 balance sheet at its cost of $125,000. This investment is accounted for using the fair value through other comprehensive income model. On December 31, Year 8, its fair value was $100,000 4. Interest expense for the notes payable has not yet be included in the numbers shown above. The note payable was issued July 1, Year 8 5. Early in Year 8, TT Corp. discovered the accountant missed recording depreciation expense of $100,000 in Year 7 year-end adjusting journal entries. 6. Total cash dividends of $45,000 were declared in Year 8. TT corporation year end is December 31 and has a 25% tax rate. Required: a) Prepare a multiple-step Statement of Comprehensive Income for Year 8 (round to the nearest dollar). Calculate all three (3) basic Earnings per Share (round to two decimal places) (17 marks). b) Prepare the column for Retained Earnings on the Statement of Changes in Equity for Year 8 (4 marks). 61771