Question

The following incorrect income statement was prepared by the accountant of t AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains: Sales revenue $660,000 Interest revenue 39,000 Gain on sale of investments 86,000 Total revenues and gains 785,000 Expenses and losses: Cost of goods sold $360,000 Selling expense 66,000 Administrative expense 86,000 Interest expense 23,000 Restructuring costs Income tax expense 47,000 Total expenses and losses 644,000 Net Income $141,000 Earnings per share 62,000 Required: Prenare a multinle.cten income statement for 2021 annivind renerally accented ac < Prev 4 of 6 fit Co search

Answer 1

INCOME STATEMENT
IN MULTIPLE STEP FORM
Particulars	Amount	Amount
Sales Revenue		$    6,60,000
Less : Cost of Goods Sold		$    3,60,000
Gross Profit		$    3,00,000
Less : Operating Expenses
Selling Expenses	$         66,000
Administrative Expenses	$         86,000
		$    1,52,000
Operating Income		$    1,48,000
Non- Operarting and others
Restructuring cost	$       -62,000
Interest Expenses	$       -23,000
Interest Revenue	$         39,000
Gain on sale of investmnet	$         86,000
		$        40,000
Net Income before Taxes		$    1,88,000
Less : IncomeTax Expenses		$        47,000
Net income after Taxes or Bal. Available to Shareholers		$    1,41,000
Earning Per Shares		$            1.41