Question

Income Statement Format The following information from Belvidere Company's current operations is available:

Administrative expenses	$82,800
Cost of goods sold	556,800
Sales revenue	926,400
Selling expenses	104,400
Interest expense	8,400
Loss from operations of discontinued segment	72,000
Gain on disposal of discontinued segment	48,000
Income taxes:
Amount applicable to ordinary operations	69,600
Reduction applicable to loss from operations of discontinued segment	28,800
Amount applicable to gain on disposal of discontinued segment	19,200

Required
a. Prepare a multiple-step income statement. (Disregard earnings per share.)
b. Prepare a single-step income statement. (Disregard earnings per share.)

Note: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

BELVIDERE COMPANY Multiple-Step Income Statement For Year Ended
Sales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
Selling Expenses	Answer
Administrative Expenses	Answer	Answer
Operating Income		Answer
Interest Expense		Answer
Income from Continuing Operations before Taxes		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer
Gain on disposal of discontinued segment	Answer	Answer
Net Income		Answer

Note: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

BELVIDERE COMPANY Single-Step Income Statement For Year Ended
Sales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue
Cost of Goods Sold	Answer
Selling Expenses	Answer
Administrative Expenses	Answer
Interest Expense	Answer
Income Tax Expense	Answer	Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue
Loss from operations of discontinued segment	Answer
Gain on disposal of discontinued segment	Answer	Answer
Net Income		Answer

Answer 1

$926,400 $ 556.800 $369,600 BELVIDERE COMPANY Multiple-Step Income Statement For Year Ended Sales Revenue Cost of goods Sold Gross Profit on sales Selling expenses $ 104,400 Administrative Expenses $ 82.800 Operating Income Interest Expense Income from Continuing Operations before Taxes Income tax Expense Income from Continuing Operations Discontinued Operations Loss from operations of discontinued segment $ (43,200) Gain on disposal of discontinued segment $ 28,800 Net Income $ 187,200 $ 182,400 $ 8,400 $174,000 $ 69,600 $ 104,400 S (14,400) $ 90,000

BELVIDERE COMPANY Single-Step Income Statement For Year Ended Sales Revenue $926,400 Expenses: Cost of goods Sold $556.800 Selling expenses $ 104,400 Administrative Expenses $ 82,800 Interest Expense $ 8,400 Income tax Expense $ 69,600 $ 822,000 Income from Continuing Operations $ 104,400 Discontinued Operations Loss from operations of discontinued segment S (43,200) Gain on disposal of discontinued segment $ 28,800 S (14,400) Net Income $ 90,000 Working Notes: Loss from operations of discontinued segment = $72,000-$28,800 = $43,200 Gain on disposal of discontinued segment = $48,000-$19,200 = $28,800