Question - The following is a partial trial balance for General Lighting Corporation as of December 31, 2011:
account title debits credits
sales revenue 2,350,000
rental revenue 80,000
loss on sale of equipment 22,500
loss from flood damage 120,000
cost of goods sold 1,200,300
loss from write down of inventory 200,000
(due to obsolescence)
salaries expense 300,000
depreciation expense 100,000
interest expense 90,000
rent expense 50,000
300,000 shares of common stock were outstanding throughout 2011. Income tax expense has not yet been accrued. The income tax rate is 40%.
Required:
1. Prepare a single-step income statement for 2011, including EPS disclosures.
2. Prepare a multiple-step income statement for 2011, including EPS disclosures.