Income statement format; single step and multiple step
Response to the following problem:
The following is a partial trial balance for General Lighting Corporation as of December 31, 2016:
Account Title Debits Credits
Sales revenue 2,350,000
Interest revenue 80,000
Loss on sale of investments 22,500
Cost of goods sold 1,200,300
Loss from write-down of inventory duo to obsolescence 200,000
Selling expenses 300,000
General and administrative expenses 150,000
Interest expense 90,000
300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%.
Required:
1. Prepare a single-step income statement for 2016, including EPS disclosures.
2. Prepare a multiple-step income statement for 2016, including EPS disclosures.