Final answer:
To prepare a single-step income statement for Coronado Corporation for the year ended December 31, 2020, you need to calculate the net income. Net sales, interest revenue, and various expenses are given. By calculating the taxable income and applying the tax rate, you can determine the net income. The single-step income statement will show the company's revenues, expenses, and resulting net income.
Step-by-step explanation:
A single-step income statement presents all revenues and expenses in one category. To prepare the income statement for Coronado Corporation for the year ended December 31, 2020, we need to calculate the net income.
Net sales = $2,418,100
Interest revenue = $35,500
Expenses:
Cost of goods sold = $1,464,000
Administrative expenses = $218,900
Selling expenses = $300,000
Interest expense = $45,600
Tax rate = 30%
Number of shares issued and outstanding = 71,830
First, we calculate the total expenses:
Total expenses = Cost of goods sold + Administrative expenses + Selling expenses + Interest expense = $1,464,000 + $218,900 + $300,000 + $45,600 = $2,028,500
Next, we calculate the taxable income:
Taxable income = Net sales + Interest revenue - Total expenses = $2,418,100 + $35,500 - $2,028,500 = $425,100
Now, we can calculate the income tax:
Income tax = Taxable income * Tax rate = $425,100 * 0.30 = $127,530
Finally, we calculate the net income:
Net income = Taxable income - Income tax = $425,100 - $127,530 = $297,570
The single-step income statement for Coronado Corporation for the year ended December 31, 2020, would be as follows:
Net sales $2,418,100
Interest revenue $35,500
Total revenues $2,453,600
Expenses $2,028,500
Income before income tax $425,100
Income tax $127,530
Net income $297,570