Question

The trial balance of XYZ Inc. included the following accounts as of December 31, 2021: Debits Credits Sales revenue5,900,000 Interest revenue40,000 Unrealized Loss on debt investments 160,000 Cost of goods sold4,400,000 Selling expense400,000 Restructuring costs190,000 Income Tax on Continuing Operations 50,000 Income Tax benefit on Discontinued Operations 25,000 Interest expense20,000 General and administrative expense300,000 Loss from Discontinued Operations 100,000 Prepare the Single step Income Statement and Statement of Comprehensive income for 2021.

Answer 1

XYZ Inc.

Step-by-step explanation:

XYZ Inc.

Trial Balance as of December 31, 2021:

Debits Credits

Sales revenue 5,900,000

Interest revenue 40,000

Unrealized Loss on

debt investments 160,000

Cost of goods sold 4,400,000

Selling expense 400,000

Restructuring costs 190,000

Income Tax on

Continuing Operations 50,000

Income Tax benefit

on Discontinued Operations 25,000

Interest expense 20,000

General and administrative

expense 300,000

Loss from Discontinued

Operations 100,000

Totals 5,620,000 5,965,000

Single-step Income Statement for the year ended December 31, 2021

Sales revenue 5,900,000

Interest revenue 40,000

Total revenue 5,940,000

Selling expense 400,000

Interest expense 20,000

General and administrative

expense 300,000 720,000

Income Tax on

Continuing Operations 50,000

Net operating income 5,170,000

Statement of Comprehensive Income for the year ended December 31, 2021

Net operating income 5,170,000

Income Tax benefit

on Discontinued Operations 25,000

Unrealized Loss on

debt investments 160,000

Restructuring costs 190,000

Loss from Discontinued

Operations 100,000 (450,000)

Net income $4,745,000