[poppazoid]

I am having difficulty in converting the numbers into a Multi-Step Income Statement. Any help would be appreciated.



Retained Earnings, January 1, 2010 as reported 400,000
Cost of Goods Sold 896,770
Operating Expenses:
Bond Interest Expense 8,000
Administrative Expenses 35,970
Net Sales
Total Comprehensive Income
Loss on Sale of Plant Asset 10,000
Income Tax Expense 133,000
Prior Period Adjustment: Correction of Inventory overstatement (net of $4,000 tax) 20,000
Extraordinary Items:
Gain on Water Damaage Insurance claim ($15,000 gross, tax of $3,000)* compute amt
Selling Expenses 248,785
Loss from Litigation Settlement ($36,000 gross loss, $14,000 tax savings)* compute amt
Income from Continuing Operations before Tax
Loss from Disposal of a division of a business ($120,000 gross loss, $39,475 tax savings) compute amt
Discontinued Operations:
Income before Extraordinary Items
Income from Continuing Operations (after tax)
Sales 1,678,500
Other Comprehensive Income (Loss)
Less: Sales Returns and Allowances 93,450
NET INCOME
Dividend Revenue 38,000
Foreign Currenty translations gain, net of $15,000 tax 100,000
Comprehensive Income
Other Revenue/Gains:
Income from Operations
Unrealized Losses on Investment Securities, net of $5,000 tax (30,000)
Other Expenses/Losses:
Total Operating Expenses
Gross Profit

(*) Unusual and Infrequent

Here is what I have so far:

Sales Revenue: (begin below this line)
Sales 1,678,500
Less: Sales Returns and Allowances -93,450
Net Sales 1,585,050
Cost of Goods Sold -896,770

GROSS PROFIT 688,280

Operating Expenses:
Bond Interest Expense 8,000
Administrative Expense 35,970
Selling Expense 248,785
Total Operating Expenses 292,755
Income from Operations 395,525
Other Revenues/Gains:
Gain on Water Damage Insurance Claim 18,000
Other Expenses/Losses:
Loss from Litigation Settlement -22,000
Loss from Disposal of a division of a business -80,525
Loss on Sale of Plant Asset -10,000
Other Comprehensive Income (Loss) -94,525
Foreign Currency translations gain 100,000
Unrealized Losses on Investment Securities -30,000
70,000




Income Tax Expense 133,000

NET INCOME $200,000

[smokedetector]

Maybe this can help

Multiple-Step Income Statement | AccountingCoach.com

[smokedetector]

There's a lot on that website. I gave you a place to start. I'm pretty sure you can find more help if you click around.

[morgaine300]

Part 5 has a little bit more. And here's another site:
Principles of Accounting Chapter 15

There's enough there to at least get you a little further before you get stuck again. It explains what the below-line items are. And the link smokey gave you shows some items that go under non-operating (or "other"). That should help you get some of this straightened out.

Then come back and ask more specific questions about the items you still don't understand. (I'll tell you right now I don't know all of those -- some of that is intermediate stuff, which I really don't do. But I can't help w/some of it anyway.)

[poppazoid]

I am still having difficulty with this:

Here is what I have so far:

Intermediate Accounting II - Case #1 Answer File
Save file by replacing the XXX in the file name with your last name, first initial--retain remaining file name.
Multi-Step Income Statement, Statement of Retained Earnings, and Statement of Comprehensive Income

NAME
100 pts, 2.5 pts per line entry Final Grade 100
Insert information in proper format (some cells are filled in for you). Add underscores as necessary.
Do not change ANY page setup please - make sure entire statement still fits on this one page please.
*if you are going to add or net two numbers those 2 numbers have to be in the same column!
Totals do NOT get placed in two adjacent columns (same row). you may insert a row as needed
Green cells are for instructor grading Final Grade will update during grading process
You may abbreviate somewhat if necessary to fit what is necessary on one line only.
*There are 50,000 shares of preferred stock outstanding
Gateway & Company
Income Statement
For the Year Ended, December 31, 2010
Sales Revenue: (begin below this line)
Sales 1,678,500
Less: Sales Returns and Allowances -93,450
Net Sales 1,585,050
Cost of Goods Sold 896,770

GROSS PROFIT 688,280

Operating Expenses:
Administrative Expense 35,970
Selling Expense 248,785
Total Operating Expenses 284,755

Income from Operations
Income from Continuing Operations Before Tax 403,525
Income Tax Expense 133,000
Income from Continuing Operations (after tax) 270,525
Discontinued Operations:
Loss from Disposal of a division of a business 120,000
Less: Income tax on disposal 39,475
Loss on Discontinued Operations 80,525
Extraordinary Items:
Loss from Litigation Settlement 36,000
Less: Income Tax on Litigation Settlement 14,000
Dividend Revenue 38,000
Gain on Water Damage Insurance Claim 15,000
Less: Income tax on Insurance Claim 3,000
Extraordinary Gain 4,000
Other Expenses/Losses:
Bond Interest Expense 8,000
Loss on Sale of Plant Asset 10,000
Total Other Expenses/Losses 18,000



NET INCOME $200,000

Earnings Per Common Share:
Income from Continuing Operations (after tax)
Loss on Discontinued Operations
Income before Extraordinary Items
Loss on Litigation Settlement
Gain on Insurance incident
Net Income per Common Share


Gateway & Company
Retained Earnings Statement
For the Year Ended, December 31, 2010
Retained Earnings, January 1, 2010 as reported $400,000
Pay Period Adjustment: Correction of Inventory overstatement 20,000
Corrected beginning Retained Earnings 420,000
Plus Net Income 200,000
620,000
Less: Dividends 110,000



Retained Earnings, December 31, 2010 510,000

Gateway & Company
Statement of Comprehensive Income
For the Year Ended, December 31, 2010
Net Income $200,000






Total Point Deductions 0

Any help would be appreciated