Q1) The following information was taken from records of Roland Carlson Inc. for year 2007. 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 |
| Loss on discontinued operation |
75,000 |
| Administrative expenses |
240,000 |
| Rent revenue |
40,000 |
| Extraordinary loss |
60,000 |
| Cash dividends declared |
$150,000 |
| Retained earnings January 1, 2007 |
600,000 |
| Cost of goods sold |
850,000 |
| Selling expenses |
300,000 |
| Sales |
1,900,000 |
Shares outstanding in 2007 were 100,000.
(a) Create single-step income statement for 2007.
(b) Create retained earnings statement for 2007.
(c) Illustrate how comprehensive income is reported using second income statement format.