Comprehensive problem
The following information was taken from the records of Lacey Inc. for the year ended 2018. All items income statement amounts are before tax. The tax rate on all items is 30%.
Unusual gain $133,000 Cash dividends declared $ 210,000
Loss on discontinued operations 105,000 Retained earnings January 1, 2018 840,000
Administrative expenses 336,000 Cost of goods sold 1,190,000
Rent revenue 56,000 Selling expenses 420,000
Unusual loss 84,000 Sales 2,700,000
Unrealized holding gain on available-sale-securities $21,000
Sales discounts 40,000
Common shares of stock outstanding during 2018 were 100,000. In 2018, Lacey changed from using LIFO to Weighted-Average for inventory. The cumulative effect of this change on income, prior to tax, was ($60,000). That is, net income would have been lower under Weighted-Average than LIFO. The applicable tax rate for prior years is 30%. On December 31, 2018, Lacy Inc. declared a $5,000 dividend to common stock shareholders.
Required:
(a) Prepare a multi-step income statement for 2018.
(b) Prepare a retained earnings statement
(c) Calculate comprehensive income
Make sure they contain (when applicable) the following items:
- Net Sales
- Gross profit
- Income from operations
- Income before income tax
- Income from continuing operations
- Net income
- Retained earnings, 12/31/2018
- Comprehensive income for 2018.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.