Question
The following statement of profit or loss items appeared on the adjusted trial balance of J and J Corporation for the year ended December 31,
The following statement of profit or loss items appeared on the adjusted trial balance of J and J Corporation for the year ended December 31, 2022: sales revenue, P22,300; cost of goods sold, P14,500; selling expenses, P2,300; general and administrative expenses, P1,200; dividend revenue from investments, P200; interest expense, P300. Income taxes have not yet been accrued. The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's statement of profit or loss every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2022. All transactions are material in amount. 1. Investments were sold during the year at a loss of P300. Foxworthy also had unrealized holding losses of P200 for the year on investments. 2. One of the company's factories was closed during the year. Restructuring costs incurred were P2,000. 3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to IFRS regarding discontinued operations. The division had incurred operating profit of P800 in 2022 prior to the sale, and its assets were sold at a loss of P1,800. 4. A foreign currency translation gain for the year totaled P600. Required: Prepare J and J's single, continuous statement of profit or loss and other comprehensive income for 2022, including earnings per share disclosures. Use the function of expense format. Two thousand ordinary shares were outstanding throughout the year.
11. How much is the total income?
A. 8,000
B. 8100
C. 8,130
D. 7,900
12. How much is the total operating expenses?
A. 6,100
B. 6,000
C. 5,900
D. 5,010
13. How much is the income from continuing operation before tax?
A. 2,000
B. 1,900
C. 2,100
D. 2,010
14. How much is the operating income tax expense?
A. 880
B. 760
C. 770
D. 800
15. How much is the income (loss) on operating the discontinued operation?
A. 700
B. 900
C. 800
D. 1,000
16. How much is the net income?
A. 550
B. 560
C. 540
D. 600
17. How much is the total tax expense (benefit) of the current year?
A. 500
B. 540
C. 560
D. 520
18. How much is the total gross income (loss) of the Other Comprehensive Income?
A. 350
B. 360
C. 380
D. 400
19. How much is the total Other Comprehensive income?
A. 240
B. 260
C. 220
D. 250
20. How much is the total Comprehensive Income (loss)?
A. 780
B. 800
C. 760
D. 820
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