Preparing an Income Statement and a Statement of Comprehensive Income The following pretax amounts are taken from the adjusted trial balance of Avoca Auto Corp. at December 31, 2020, its annual year-end. Sales revenue $208,000 Cost of goods sold 88,000 Operating expenses 64,000 Gain on debt retirement 16,000 Interest expense 6,400 Loss from discontinued operations 40,000 Retained earnings balance, December 31, 2019 24,000 Dividends declared and paid 20,000 Unrealized holding gain on debt investment securities, net of tax 3,200 Common stock, weighted average shares outstanding 8,000 shares Required a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per share disclosures. C. Compute the ending retained earnings balance at December 31, 2020. Enter revenues and gains and expenses and losses in the order of the largest dollar amount to the smallest dollar amount. Do not use negative signs with any of your answers. Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny. Single-step Income Statement Statement of Comprehensive Income Retained Earnings balance b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per share disclosures. Avoca Auto Corp. Income Statement For the Year Ended December 31, 2020 Revenues and gains Sales revenue Cost of goods sold 0 Single-step Income Statement Statement of Comprehensive Income Retained Earnings balance b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per share disclosures. Avoca Auto Corp Income Statement For the Year Ended December 31, 2020 Revenues and gains Sales revenue $ 0 Cost of goods sold 0 Total revenues and gains 0 Expenses and losses Operating expenses 0 Income from continuing operations 0 0 Total expenses and losses 0 0 0 Income from continuing operations 0 0 $ 0 Avoca Auto Corp. Comprehensive Income Statement For the Year Ended December 31, 2020 $ 0 0 T $ 0 Please answer all parts of the question. 6,400 Preparing an Income Statement and a statement of Comprehensive Income The following pretax amounts are taken from the adjusted trial balance of Avoca Auto Corp. at December 31, 2020, its annual year-end. Sales revenue $208,000 Cost of goods sold 88,000 Operating expenses 64,000 Gain on debt retirement 16,000 Interest expense Loss from discontinued operations 40,000 Retained earnings balance, December 31, 2019 24,000 Dividends declared and paid 20,000 Unrealized holding gain on debt investment securities, net of tax Common stock, weighted average shares outstanding 8,000 shares Required a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. b. Prepare a comprehensive income statement by showing a separate but consecutive statement of comprehensive income. Ignore earnings per share disclosures. c. Compute the ending retained earnings balance at December 31, 2020. Enter revenues and gains and expenses and losses in the order of the largest dollar amount to the smallest dollar amount. Do not use negative signs with any of your answers. Enter the answers for per share amounts in dollars and cents, rounded to the nearest penny. 3,200 Single-step Income Statement Statement of Comprehensive Income Retained Earnings balance c. Compute the ending retained earnings balance at December 31, 2020. $ 0 Please answer all parts of the
