Prepare income statement and comprehensive income statement.
(LO 3) AP
The ledger of Coquitlam Corporation at December 31, 2017, contains the following summary data:
| Cash dividends-common |
$ 125,000 |
Other comprehensive income-gain on equity investments (before income tax) |
$ 47,000 |
| Cash dividends-preferred |
55,000 |
|
|
| Cost of goods sold |
888,000 |
Other expenses |
18,000 |
| Sales |
1,750,000 |
Retained earnings, January 1, 2017 |
642,000 |
| Operating expenses |
451,000 |
|
|
Your analysis reveals the following additional information:
- 1.The company has a 25% income tax rate.
- 2.The ceramics division was discontinued on July 31. The loss from operations for the division up to that day was $150,000 before income tax. The division was sold at a pre-tax gain of $70,000 before income tax.
- 3.There were 200,000 common and 100,000 noncumulative preferred shares issued on December 31, 2016, with no changes during the year.
Instructions
(a) Prepare a multiple-step income statement for the year.
(b) Prepare a statement of comprehensive income as a separate statement.