Exercise 4-16 (E4-16) (Various Reporting Formats) The following
information was taken from the records of Roland Carlson Inc. for the
year 2007. Income tax applicable to income from continuing operations
$187,000; income tax applicable to loss on discontinued operations
$25,500; income tax applicable to extraordinary gain $32,300; income tax
applicable to extraordinary loss $20,400; and unrealized holding gain
on available-for-sale securities 15,000.
Extraordinary gain $ 95,000 Cash dividends declared $ 150,000
Loss on discontinued operations 75,000 Retained earnings January 1, 2007 600,000
Administrative expenses 240,000 Cost of goods sold 850,000
Rent revenue 40,000 Selling expenses 300,000
Extraordinary loss 60,000 Sales 1,900,000
Shares outstanding during 2007 were 100,000.
Instructions
(a) Prepare a single-step income statement for 2007.
(b) Prepare a retained earnings statement for 2007.
(c) Show how comprehensive income is reported using the second income statement format.
Click here for the solution: (Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2007
