Question

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2021, included the following accounts: Account Title Debits Credits Sales revenue 2,580,000 Cost of goods sold 1,530,000 Selling and administrative expense 437,000 Interest expense 53,000 Gain on debt securities 93,000 The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 25%. There were 1,300,000 shares of common stock outstanding throughout 2021. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021, including appropriate EPS disclosures. (Round EPS answer to 2 decimal places.) LINDOR CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2021 Gross profit Operating expenses Operating income Other income (expense) Income before income taxes Net income Other comprehensive income (net of tax) Comprehensive income Earnings per share:

Answer 1

LINDOR CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2021

Credits Sales revenue $2,580,000

Cost of goods sold 1,530,000

Gross profit $1,050,000

Operating expenses:

Selling & administrative expense 437,000

Operating income $613,000

Other income (expense)

Interest expense 53,000

Income before income taxes $560,000

Income Tax (25%) $140,000

Net income $420,000

Other comprehensive income (net of tax)

Gain on debt securities 69,750

Comprehensive income $489,750

Earnings per share: $0.38

Step-by-step explanation:

A Statement of Comprehensive Income is an Income Statement that includes all the detailed incomes and expenses, up to the comprehensive income which includes unrealized gains and losses.