Question

Blossom Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

Sales revenue		$1,219,000
Discontinued operations loss (net of tax)		56,700
Selling expenses		127,200
Cash		60,100
Accounts receivable		89,700
Common stock		200,000
Cost of goods sold		696,800
Accumulated depreciation-machinery		183,600
Dividend revenue		7,800
Unearned service revenue		4,800
Interest payable		1,200
Land		374,000
Patents		105,000
Retained earnings, January 1, 2020		288,210
Interest expense		17,300
Administrative expenses		171,200
Dividends declared		27,400
Allowance for doubtful accounts		5,500
Notes payable (maturity 7/1/23)		186,000
Machinery		459,000
Materials		40,600
Accounts payable		64,600

The amount of income taxes applicable to income was $64,290, excluding the tax effect of the discontinued operations loss which amounted to $24,300.

Prepare a multiple-step income statement

.

Prepare a multiple step income statement Blossom Corporation INCOME STATEMENT S > > < > > > > > > < > Par Share of Common Stock S S

Answer 1

Blossom Corporation
INCOME STATEMENT
For the year ended December 31,2020
Sales Revenue		$1,219,000
Cost of goods sold		$696,800
Gross Profit		$522,200
Operating expenses:
Selling expenses	$127,200
Administrative expenses	$171,200
Total operating expenses		$298,400
Operating Income		$223,800
Other revenue and expense:
Dividend revenue	7,800
Interest expense	($17,300)
		($9,500)
Income before income taxes		$214,300
Income taxes		$64,290
Income from continuing operations		$150,010
Discontinued operations loss, net of applicable taxes of $24,300		($56,700)
Net income		$93,310
Per share of common stock
Income from continuing operations ($150,010/50,000)		$3
Discontinued operations loss, net of tax ($56,700/50,000)		($1.134)
Net income		1.866