Question

Shown below is an income statement for 2020 that was prepared by a poorly trained bookkeeper of Cullumber Corporation Cullumber Corporation INCOME STATEMENT December 31, 2020 Sales revenue Investment revenue Cost of goods sold Selling expenses Administrative expenses Interest expense Income before special items Special items Loss on disposal of a component of the business Net federal income tax liability Net income $825.000 18,000 (406,000) (143,500) (193,700) (12,500) 87.300 (42.2001 (13,530) $31.570 Prepare a multiple-step income statement for 2020 for Cultumber Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Cullumber Corporation has 50,000 shares of common stock outstanding and has a 30% federal income tax rate on all tax related items (Round per shore values to 2 decimal places a $2.50) Cullumber Corporation INCOME STATEMENT > > > > > > > > <<<< くくく

Answer 1

Answer
Income Statement
For the Year Ended December 31, 2020
Particulars	Amount	Amount
Sales revenue		$ 8,25,000
Cost of goods sold		$-4,06,000
Gross profit		$ 4,19,000
Selling expenses	$1,43,500
Administrative expense	$1,93,700	$-3,37,200
Income from operations		$     81,800
Other revenue:
Investment revenue		$     18,000
Other expenses:
Interest expense		$   -12,500
Income from continuing operations before tax		$     87,300
Income tax expense @30%		$     26,190
Income from continuing operations		$     61,110
Loss from discontinued operations (net of income tax 12660)		$     29,540
Income before extraordinary items		$     31,570
Extraordinary items		-
Net income		$     31,570
Earnings per share:
Continuing operations (61110/50000)		$         1.22
Discontinued operations (-29540/50000)		$       -0.59
Net income		$         0.63