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Roland Carlson Inc: Prepare two income statement formats & retained earnings

The following information was taken from the records of Roland Carlson Inc. for the year 2004. Income tax applicable to income from continuing operations $187,000; income tax applicable to loss on discontinued operations $25,500; income tax applicable to extraordinary gain $32,300; income tax applicable to extraordinary loss $20,400; and unrealized holding gain on available-for-sale securities $15,000.

Extraordinary gain $ 95,000 Cash dividends declared $ 150,000
Loss on discontinued Retained earnings
Operations 75,000 January 1, 2004 600,000
Administrative exp 240,000 Cost of goods sold 850,000
Rent revenue 40,000 Selling expenses 300,000
Extraordinary loss 60,000 Sales 1,900,000

Shares outstanding during 2004 were 100,000.

Instructions

a. Prepare a single-step income statement for 2004.
b. Prepare a retained earnings statement for 2004.
c. Show how comprehensive income is reported using the second income statement format.

Solution Summary

In good form in Excel, the solution presents the formatted statements.

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