Question

Concord Co. had sales revenue of $555,600 in 2020. Other items recorded during the year were: Cost of goods sold $320,200 Salaries and wages expense 120,100 Income tax expense 25,590 Increase in value of company reputation 15,570 Other operating expenses 11,210 Unrealized gain on value of patents 20,410 Prepare a single-step income statement for Concord for 2020. Concord has 105,600 shares of stock outstanding

Answer 1

Concord Co.

Income Statement

For the Year Ended December 31, 2020

Revenues:

Sales revenue $555,600

Expenses:

Cost of goods sold ($320,200)

Salaries and wages expense ($120,100)

Other operating expenses ($11,210)

Income tax expense ($25,590)

Net income: $78,500

Earnings per share: $0.74

Increase in value of company reputation and unrealized gain on value of patents are not included in this income statement.