The following information was taken from the records of Gibson Inc. for the year 2010. Income tax applicable to income from continuing operations $119,000; 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
Loss on discontinued operations
75,000
Administrative expenses
240,000
Rent revenue
40,000
Extraordinary loss
60,000
Cash dividends declared
$ 150,000
Retained earnings January 1, 2010
600,000
Cost of goods sold
850,000
Selling expenses
300,000
Sales
1,700,000
Shares outstanding during 2010 were 100,000.
Instructions
Prepare a single-step income statement for 2010.
Prepare a retained earnings statement for 2010.
Show how comprehensive income is reported using the second income statement format.