The following information was taken from the records of Cantu Inc. for the year ended December 31, 2021: The unusual gain and the unusual loss are included in income from continuing operations. Income tax applicable to income from continuing operations was $261,800; income tax applicable to loss on discontinued operations was $35,700; income tax applicable to unusual gain was $45,220; and income tax applicable to unusual loss was $28,560.

Unusual gain $133,000 Loss on discontinued operations 105,000 Administrative expenses 336,000 Rent revenue 56,000 Unusual loss 84,000 Cash dividends declared $ 210,000 Retained earnings January 1, 2021 840,000 Cost of goods sold 1,190,000 Selling expenses 420,000 Sales 2,660,000

Cantu had a $21,000 unrealized holding gain on its investment in available-for-sale debt securities. There were 100,000 shares of common stock outstanding throughout 2021. There were no preferred shares outstanding, so there was no preferred dividend.

Instructions

(a.) Prepare an income statement for Cantu, Inc., for the year ending December 31, 2021, using the single-step format. (b.)Prepare an income statement for Cantu, Inc., for the year ending December 31, 2021, using the multiple-step format.

(c.) Prepare a retained earnings statement for Cantu, Inc., for the year ending December 31, 2021.

(d.) Show how comprehensive income for 2021 would be reported using the two-statement format.