The following information is to be used for the preparation of the income statement of Lucky Fin Enterprises for the year ended December 31, 2021. Lucky Fin Enterprises is composed principally of Lucky Fin Sporting Goods and Lucky Fin Pool & Swim Equipment. Lucky Fin is presenting its income statement for the 2021 year only no prior years will be presented.

Rental Revenue Dividend Revenue Accounts Payable Foreign Currency Translation charge Selling Expenses Cash Sales Common Stock Property & Equipment Cost of Goods Sold Accounts Receivable Administrative Expenses Inventory Dividends on Common Stock Retained Earnings, 1/1/21

$ 90,000 12,000 42,000 40,000 352,000 60,000 1,400,000 300,000 100,000 490,000 73,000 270,000 64,000 15,000 43,000

Lucky Fin Enterprises income tax rate is 25% for all items and has 200,000 shares of weighted common stock outstanding. In addition to the account balances presented above, Fin provided information regarding the following transactions, which have not yet been recorded as of 12/31/21:

(1) During 2021, Fin sold one of the securities from its portfolio for a loss of $40,000.

(2) During 2021, Fin realized that depreciation had been improperly calculated and recorded during 2020. This error would have increased income in 2020. The pretax effect of the error was $4,000.

(3) Fin decided on June 1, 2021 to dispose of his Pool & Swim Equipment division. The division qualifies as a component under US GAAP. The loss from operations of the division from January 1 thru June 1 totaled $60,000. The loss on disposal of the division was $50,000.

(4) Unrealized gains during 2021 from available for sale securities totaled $30,000.

REQUIRED:

1. Prepare a multiple-step income statement for Lucky Fin Enterprises for the year ended 12/31/21.

2. Prepare a separate Statement of Comprehensive Income for Lucky Fin Enterprises for the year ended 12/31/21.

3. Prepare a Statement of Retained Earnings for Lucky Fin Enterprises for the year ended 12/31/21.

SHOW WORK OF HOW SOLVED AND EXPLAIN IF YOU CAN.