Question

JDW Corporation reported the following for 20X1: net sales $2,929,500; cost of goods sold $1786,995; selling and administrative expenses $585.900; unrealized holding loss on available for sale securities (considered other comprehensive income) $22,000; a positive foreign currency translation adjustment $26,250 (considered other comprehensive income), and an unrealized loss from pension adjustment considered other comprehensive income) $7.000. JDW's tax rate was 21%. Ignore income taxes related to amounts in other comprehensive income. Required: Prepare a multiple-step income statement and a statement of comprehensive income using the two-statement format. Ignore earnings per share.

Answer 1

JDW Corporation

Income statement

For the year ended December 31, 20x1

Sales $2,929,500

Cost of good sold $1,786,995

Gross Profit $1,142,505

Selling and Administration expenses $585,900

Income from Operations before tax $446,605

Income Tax $116,887

Net Income $439,718

JDW Corporation

Statement of comprehensive income

For the year ended December 31, 20x1

Net Income $439,718

Unrealized holding loss net of tax -$22,000

Foreign currency transaction adjustment $26,250

Unrealized loss from pension adjustment net of tax -$7,000

Comprehensive Income $436,968