Question

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following income accounts:

Account Title	Debits	Credits
Sales revenue		2,640,000
Cost of goods sold	1,560,000
Selling and administrative expenses	434,000
Interest expense	56,000
Unrealized holding gains on investment securities		96,000

The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 40%. 1.6 million shares of common stock were outstanding throughout 2016.

Required:

Prepare a single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS disclosures. (Round EPS answers to 2 decimal places.)

Answer 1

Solution:

Lindor Corporation
Statement of Comprehensive Income
For the year ended 2016
Particulars	Amount
Sales revenue	$2,640,000.00
Cost of goods sold	$1,560,000.00
Gross Profit	$1,080,000.00
Operating Expenses:
Selling and administrative Expenses	$434,000.00
Operating Income	$646,000.00
Interest expense	$56,000.00
Earning before taxes	$590,000.00
Income tax expense (40%)	$236,000.00
Net Income	$354,000.00
Other comprehensive Income:
Unrealized holding gains on investment securities (net of taxes)	$57,600.00
Total Comprehensive Income for the year	$411,600.00
Nos of outstanding shares	1600000
Earning per share ($411,600 / 1600000)	$0.26