Question

Exercise 4-4 (Algo) Multiple-step continuous statement of comprehensive income (L04-1, 4-5, 4-6) The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2021, included the following accounts: Debits Credits 2,500,000 Account Title Sales revenue Cost of goods sold Selling and administrative expense Interest expense Gain on debt securities 1,490,000 421,000 49,000 89,000 The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 25%. There were 1,500,000 shares of common stock outstanding throughout 2021. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021, including appropriate EPS disclosures. (Round EPS answer to 2 decimal places.)

Answer 1

LINDOR CORPORATION Statement of Comprehensive income For the Year Ended December 31, 2021
Sales Revenue	$ 2,500,000
Less: Cost of goods sold	($ 1,490,000)
Gross Profit	$ 1,010,000
Operating expenses :
Selling and Administrative Expense	($ 421,000)
Operating Income	$ 589,000
Other income (expenses)
Interest Expense	($ 49,000)
Income before income taxes	$ 540,000
Less: Income Tax Expense                ($ 540,000 x 25% )	($ 135,000)
Net Income	$ 405,000
Other comprehensive income (net of tax)
Gain on debt securities, net of tax [ $ 89,000 x ( 1 (-) 25% ) ]	$ 66,750
Comprehensive income	$ 471,750
Earnings per share : ( $ 405,000 / 1,500,000 shares )	$ 0.27