Question
The current year's statement of net income for Tupper TreatsTupper Treats, Inc. is presented below in a single-step format. Requirement Prepare a condensed, multiple-step statement
The current year's statement of net income for Tupper TreatsTupper Treats, Inc. is presented below in a single-step format.
Requirement
Prepare a condensed, multiple-step statement of net income for
Tupper Treats Inc. that includes all supporting schedules.
Prepare Tupper Treats condensed, multiple-step income statement. Supporting disclosures will be completed in the next step. (List the subheadings in the order they are typically shown on amultiple-step income statement. Round all amounts to the nearest whole dollar. Use parentheses or a minus sign to enter otherexpenses.
Tupper Treats, Inc. Income Statement For the Year Ended December 31
Revenues and Gains
Sales
$890,000
Interest Income
425
Dividend Income
920
Gain on Sale of Investment Securities
4,500
Unrealized Gain on Trading Securities
7,200
Total Revenues and Gains
$903,045
Expenses and Losses
Cost of Goods Sold
$61,000
Selling Expenses
50,000
Sales Salaries Expense
32,000
Advertising Expense
20,000
Depreciation Expense-General
2,900
Amortization Expense-General
1,600
Office Salaries Expense
31,000
Office Supplies Expense
41,000
Loss on Asset Impairment
4,600
Legal Fees-General
2,500
Accounting Fees-General
5,500
Interest Expense
6,400
Income Tax Expense at 45%*
290,045
Total Expenses and Losses
(548,545)
Income from Continuing Operations
$354,500
Gain on Discontinued Operations-net of tax
3,025
Net Income
$357,525
*45% x ($903,045-$258,500) = 45% x $644,545 = $290,045
Prepare
Tupper Treats'Tupper Treats'
condensed, multiple-step income statement. Supporting disclosures will be completed in the next step. (List the subheadings in the order they are typically shown on a multiple-step income statement. Round all amounts to the nearest whole dollar. Use parentheses or a minus sign to enter other expenses.)
Tupper Treats, Inc. Statement of Net Income For the Year Ended December 31 Less Net IncomeStep by Step Solution
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