The Andrew Company, a seller of toy trains and cars has asked you to prepare a multistep income statement for the period ended December 31, 2016. The Trial Balance as it relates to the income statement accounts is as follows:
| |
Dr
|
Cr
|
|
Sales Revenue
|
|
$3,000,000
|
|
Sales returns and allowances
|
$150,000
|
|
|
Cost of Goods Sold
|
$810,000
|
|
|
Selling Expenses
|
$400,000
|
|
|
Administrative Expenses
|
$240,000
|
|
|
Rent Revenue
|
|
$50,000
|
|
Loss on sale of machinery
|
$29,000
|
|
| |
|
|
In addition on January 1, 2016 the company decided to sell its toy airplane division. It recorded a profit before tax of $250,000 up until September 31st when it sold the division to the Jake Company. Andrew Company recorded a loss on thesale of $325,000.
On July 12, 2016 a fire destroyed one of Andrew Company's warehouses. The loss totaled $400,000 and was considered unusual and infrequent in nature.
The tax rate is 34% During the year there were 100,000 shares of common stock outstanding.
Required:
• Prepare a multistep income statement for Andrew Company. Form counts!! Use proper headings.
• Include an EPS section separating Income from operations and discontinued operations.
• Please submit in excel. Handwritten assignments will lose 1 point.