Question
The ledger of Crane Corporation at November 30, 2021, contains the following summary data: Cash dividendscommon $60,500 Operating expenses $1,101,000 Cash dividendspreferred 25,000 Other comprehensive
The ledger of Crane Corporation at November 30, 2021, contains the following summary data:
Cash dividendscommon | $60,500 | Operating expenses | $1,101,000 | |||
Cash dividendspreferred | 25,000 | Other comprehensive incomeloss on equity investments (before income tax) | 71,000 | |||
Common shares | 315,500 | Rent revenue | 39,000 | |||
Cost of goods sold | 7,190,000 | Preferred shares ($5 noncumulative) | 381,000 | |||
Depreciation expense | 341,000 | Retained earnings, December 1, 2020 | 732,000 | |||
Sales | 9,011,000 |
Your analysis reveals the following additional information:
1. | The company has a 25% income tax rate. | |
2. | The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $15,200 before income tax. The division was sold at a loss of $70,500 before income tax. | |
3. | There were 200,000 common and 5,000 preferred shares issued on December 1, 2020, with no changes during the year. |
Prepare a multiple-step income statement for the year.
CRANE CORPORATION Income Statement Year Ended November 30, 2021November 30, 2021Month Ended November 30, 2021 | ||
Operating ExpensesIncome Tax ExpenseCost of Goods SoldSalesProfit on Discontinued Operations of Communication Device Division | $ | |
Profit on Discontinued Operations of Communication Device DivisionSalesOperating ExpensesCost of Goods SoldIncome Tax Expense | ||
Discontinued OperationsEnding Balance, December 31Profit from Continuing OperationsTotal Other RevenuesDividendsProfit / (Loss)Other Comprehensive LossBeginning Balance, November 30Comprehensive IncomeExpensesGross ProfitOther RevenuesProfit from OperationsProfit before Income TaxesTotal Expenses | ||
SalesOperating ExpensesDepreciation ExpenseIncome Tax ExpenseLoss on Disposal of Discontinued Communication Device Division | $ | |
Operating ExpensesSalesIncome Tax ExpenseLoss on Disposal of Discontinued Communication Device DivisionDepreciation Expense | ||
Discontinued OperationsProfit before Income TaxesDividendsExpensesGross ProfitTotal Other RevenuesProfit / (Loss)Comprehensive IncomeBeginning Balance, November 30Other Comprehensive LossProfit from OperationsProfit from Continuing OperationsOther RevenuesTotal ExpensesEnding Balance, December 31 | ||
ExpensesOther Comprehensive LossProfit from OperationsDiscontinued OperationsComprehensive IncomeDividendsBeginning Balance, November 30Gross ProfitTotal ExpensesProfit / (Loss)Ending Balance, December 31Total Other RevenuesProfit from Continuing OperationsProfit before Income TaxesOther Revenues | ||
Profit before Income TaxesDividendsOther Comprehensive LossProfit / (Loss)Gross ProfitTotal ExpensesTotal Other RevenuesEnding Balance, December 31Beginning Balance, November 30Comprehensive IncomeProfit from Continuing OperationsProfit from OperationsOther RevenuesExpensesDiscontinued Operations | ||
SalesDepreciation ExpenseIncome Tax ExpenseLoss on Disposal of Discontinued Communication Device DivisionOperating Expenses | ||
Total ExpensesBeginning Balance, November 30Ending Balance, December 31Profit from OperationsOther RevenuesProfit before Income TaxesTotal Other RevenuesOther Comprehensive LossProfit / (Loss)ExpensesDividendsProfit from Continuing OperationsGross ProfitDiscontinued OperationsComprehensive Income | ||
Total Other RevenuesGross ProfitProfit / (Loss)Comprehensive IncomeDiscontinued OperationsProfit from OperationsOther Comprehensive LossProfit from Continuing OperationsExpensesBeginning Balance, November 30Other RevenuesEnding Balance, December 31Profit before Income TaxesTotal ExpensesDividends | ||
Depreciation ExpenseLoss on Disposal of Discontinued Communication Device DivisionSalesOperating ExpensesProfit on Discontinued Operations of Communication Device Division | ||
Operating ExpensesProfit on Discontinued Operations of Communication Device DivisionDepreciation ExpenseLoss on Disposal of Discontinued Communication Device DivisionSales | ||
ExpensesOther RevenuesEnding Balance, December 31Profit before Income TaxesProfit from Continuing OperationsComprehensive IncomeOther Comprehensive LossBeginning Balance, November 30Gross ProfitDividendsProfit from OperationsTotal Other RevenuesProfit / (Loss)Discontinued OperationsTotal Expenses | $ | |
Earnings per share | $ |
Question Part Score
--/15
Prepare a statement of comprehensive income as a separate statement.
CRANE CORPORATION Statement of Comprehensive Income November 30, 2021Month Ended November 30, 2021Year Ended November 30, 2021 | ||
Profit / (Loss)Profit from Continuing OperationsExpensesProfit from OperationsGross ProfitProfit before Income TaxesTotal ExpensesOther RevenuesComprehensive IncomeDividendsOther Comprehensive LossEnding Balance, December 31Total Other RevenuesDiscontinued OperationsBeginning Balance, November 30 | $ | |
Comprehensive IncomeDiscontinued OperationsTotal Other RevenuesDividendsProfit before Income TaxesGross ProfitProfit from OperationsTotal ExpensesBeginning Balance, November 30Profit / (Loss)Ending Balance, December 31ExpensesProfit from Continuing OperationsOther RevenuesOther Comprehensive Loss | ||
Gain on Equity Investments (Net)Loss on Income Tax Savings (Net)Loss on Equity Investments (Net)Profit on Discontinued Operations of Communication Device DivisionGain on Income Tax Savings (Net) | ||
Total ExpensesBeginning Balance, November 30Total Other RevenuesProfit from OperationsComprehensive IncomeExpensesDividendsOther RevenuesGross ProfitProfit before Income TaxesProfit / (Loss)Discontinued OperationsOther Comprehensive LossEnding Balance, December 31Profit from Continuing Operations | $ |
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