Question

statement with all supporting disclosures. P5-3. Multiple-step, Single-step, and Condensed Statements of Net Income. Right Angle Manufacturing pany provided the following information for the year ended December 31 for the current year Right Angle Manufacturing Company Trial Balance (Partial) For the Year Ended December 31 Debit Credit $ 75,000 95,000 $3,400 500 Account Common Stock-Beginning Balance Retained Earnings—Beginning Balance Accumulated Other Comprehensive Income--Beginning Balance Dividends Ge Sales 4 Dividend Income 9 - Interest Income 7 - Gain on Disposal of Plant Assets Unrealized Gain on Trading Securities GP/Cost of Goods Sold 230,000 200 680 1,000 $4,000 $75,000

Answer 1

Right Angle Manufacturing Company
Answer a
Single Step- Income Statement for the year ended December 31.
Particulars	Amount $	Amount $
Revenues
Sales	230,000.00
Dividend Income	200.00
Interest Income	680.00
Gain on disposal of plant assets	1,000.00
Unrealized Gain on trading securities	4,000.00
Total Revenues		235,880.00
Cost of goods sold		75,000.00
Gross Profit		160,880.00
Expenses
Selling expense	1,450.00
Sales Salaries Expense	145.00
Advertising Expense	3,400.00
Depreciation Expense- General	2,350.00
Amortization Expense-General	3,000.00
Office Salaries Expense	1,890.00
Office Supplies Expense	1,250.00
Systems Consulting Fees- General	670.00
Accounting & Legal Fees- Administrative	575.00
Interest expense	890.00
Loss on asset impairment	900.00
Loss on Discontinued Operations before tax	250.00
Total Expense		16,770.00
Income before tax		144,110.00
Tax expense		57,644.00
Net Income		86,466.00
Other Comprehensive Income		Amount $
Unrealized Gain on Available for sale Bonds		780.00
Other Comprehensive Income		780.00

Answer b
Multi Step- Income Statement for the year ended December 31.
Particulars	Amount $	Amount $
Sales Revenue	230,000.00
Less: returns and allowances	-
Net Sales		230,000.00
Cost of goods sold		75,000.00
Gross Profit		155,000.00
Selling expense	1,450.00
Sales Salaries Expense	145.00
Advertising Expense	3,400.00
Depreciation Expense- General	2,350.00
Amortization Expense-General	3,000.00
Office Salaries Expense	1,890.00
Office Supplies Expense	1,250.00
Systems Consulting Fees- General	670.00
Accounting & Legal Fees- Administrative	575.00
Operating Expense		14,730.00
Operating Income		140,270.00
Dividend Income	200.00
Interest Income	680.00
Gain on disposal of plant assets	1,000.00
Unrealized Gain on trading securities	4,000.00
Loss on asset impairment	(900.00)
Interest expense	(890.00)
Other expense and income		4,090.00
Income before tax		144,360.00
Tax expense		57,744.00
Income from continuing operations		86,616.00
Loss on Discontinued Operations before tax	(250.00)
Tax at 40%	(100.00)
Loss on Discontinued Operations after tax		(150.00)
Net Income		86,466.00
Other Comprehensive Income		Amount $
Unrealized Gain on Available for sale Bonds		780.00
Other Comprehensive Income		780.00

Answer c
Schedules for Multi Step- Income Statement
Operating Expense
Selling expense	1,450.00
Sales Salaries Expense	145.00
Advertising Expense	3,400.00
Depreciation Expense- General	2,350.00
Amortization Expense-General	3,000.00
Office Salaries Expense	1,890.00
Office Supplies Expense	1,250.00
Systems Consulting Fees- General	670.00
Accounting & Legal Fees- Administrative	575.00
Operating Expense		14,730.00
Other expense and income
Dividend Income	200.00
Interest Income	680.00
Gain on disposal of plant assets	1,000.00
Unrealized Gain on trading securities	4,000.00
Loss on asset impairment	(900.00)
Interest expense	(890.00)
Other expense and income		4,090.00
Loss on Discontinued Operations after tax
Loss on Discontinued Operations before tax	(250.00)
Tax at 40%	(100.00)
Loss on Discontinued Operations after tax		(150.00)

Condensed Multi Step- Income Statement for the year ended December 31.
Particulars	Amount $
Sales Revenue	230,000.00
Less: returns and allowances	-
Net Sales	230,000.00
Cost of goods sold	75,000.00
Gross Profit	155,000.00
Less: Operating Expense	14,730.00
Operating Income	140,270.00
Add: Other expense and income	4,090.00
Income before tax	144,360.00
Tax expense	57,744.00
Income from continuing operations	86,616.00
Loss on Discontinued Operations after tax	(150.00)
Net Income	86,466.00
Other Comprehensive Income	Amount $
Unrealized Gain on Available for sale Bonds	780.00
Other Comprehensive Income	780.00