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The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2021
The following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 | |||||
Revenues and gains: | |||||
Sales revenue | $ | 700,000 | |||
Interest revenue | 43,000 | ||||
Gain on sale of investments | 90,000 | ||||
Total revenues and gains | 833,000 | ||||
Expenses and losses: | |||||
Cost of goods sold | $ | 380,000 | |||
Selling expense | 70,000 | ||||
Administrative expense | 90,000 | ||||
Interest expense | 27,000 | ||||
Restructuring costs | 66,000 | ||||
Income tax expense | 50,000 | ||||
Total expenses and losses | 683,000 | ||||
Net Income | $ | 150,000 | |||
Earnings per share | $ | 1.50 | |||
Required: Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
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