Prepare in good form a multiple-step income statement


Presented below is information related to Big Blast Company.

Retained earnings, December 31, 2010 $ 2,350,000
Sales 2,600,000
Selling and administrative expenses 240,000
Earthquake loss (pre-tax) on plant (extraordinary item) 250,000
Cash dividends declared on common stock 53,600
Cost of goods sold 1,000,000
Gain resulting from computation error 520,000
on depreciation charge in 2009 (pre-tax)
Other revenue 80,000
Other expenses 50,000


Instructions


Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year.

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Accounting Basics: Prepare in good form a multiple-step income statement
Reference No:- TGS080574

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