The following information was taken from the records of Roland Carlson Inc. for the 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.
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Extraordinary gain
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$95,000
|
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Loss on discontinued operation
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75,000
|
|
Administrative expenses
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240,000
|
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Rent revenue
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40,000
|
|
Extraordinary loss
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60,000
|
|
Cash dividends declared
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$150,000
|
|
Retained earnings January 1, 2007
|
600,000
|
|
Cost of goods sold
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850,000
|
|
Selling expenses
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300,000
|
|
Sales
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1,900,000
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Shares outstanding during 2007 were 100,000.
Instructions:
a) Prepare a single-step income statement for 2007.
b) Prepare a retained earnings statement for 2007.
c) Show how comprehensive income is reported using the second income statement format.