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 $260,000 Cost of goods sold 110,000 Operating expenses 80,000 Gain on debt retirement 20,000 Interest expense 8,000 Loss from discontinued operations 50,000 Retained earnings balance, December 31, 2019 30,000 Dividends declared and paid 25,000 Unrealized holding gain on debt investment securities, net of tax 4,000 Common stock, weighted average shares outstanding 10,000 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. Round the per share amounts to two decimal places. Single-step income statement Statement of comprehensive income Retained earnings balance a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. Avoca Auto Corp. Income Statement For the Year Ended December 31, 2020 $ Total revenues and gains . . Total expenses and losses $ Per share: $ $ Previous A Save Answers 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 $ Total revenues and gains + Total expenses and losses $ Avoca Auto Corp. Comprehensive Income Statement For the Year Ended December 31, 2020 c. Compute the ending retained earnings balance at December 31, 2020. $ 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 $260,000 Cost of goods sold 110,000 Operating expenses 80,000 Gain on debt retirement 20,000 Interest expense 8,000 Loss from discontinued operations 50,000 Retained earnings balance, December 31, 2019 30,000 Dividends declared and paid 25,000 Unrealized holding gain on debt investment securities, net of tax 4,000 Common stock, weighted average shares outstanding 10,000 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. Round the per share amounts to two decimal places. Single-step income statement Statement of comprehensive income Retained earnings balance a. Prepare a single-step income statement. Assume an average 25% tax rate on all items. Include earnings per share disclosures. Avoca Auto Corp. Income Statement For the Year Ended December 31, 2020 $ Total revenues and gains . . Total expenses and losses $ Per share: $ $ Previous A Save Answers 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 $ Total revenues and gains + Total expenses and losses $ Avoca Auto Corp. Comprehensive Income Statement For the Year Ended December 31, 2020 c. Compute the ending retained earnings balance at December 31, 2020. $
