Question

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following income accounts: Account Title Debits Credits Sales revenue 2,300,000 Cost of goods sold 1,400,000 Selling and administrative expenses 420,000 Interest expense 40,000 Unrealized holding gains on investment securities 80,000 The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. One million shares of common stock were outstanding throughout 2016. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS disclosures.

Answer 1

Net income $302,000

Comprehensive Income $382,000

Earnings Per Share 0.30

Step-by-step explanation:

Preparation of a single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS disclosures.

Lindor Corporation Statement of Comprehensive Income for 2016

Sales revenue $2,300,000

Less Cost of goods sold $1,400,000

Gross profit 900,000

($2,300,000-$1,400,000)

Less Operating expenses:

Selling and administrative expenses ($420,000)

Operating income $480,000

($900,00-$420,000)

Less other expenses:

Interest expense ($40,000)

Income before tax Expenses $440,000

($480,000-$40,000)

Income tax Expenses $132,000

(30%*$440,000)

Net income $302,000

($440,000-$132,000)

Other comprehensive income:

Add Unrealized holding gain on investment securities,net of tax $80,000

Comprehensive Income $382,000

($302,000+$80,000)

Earnings Per Share:

Net Income

(302,000 / 1,000,000) 0.30

Therefore Lindor Corporation single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS

disclosures will be :

Net income $302,000

Comprehensive Income $382,000

Earnings Per Share 0.30