Question

The following balances were taken from the books of Bramble Corp. on December 31, 2020.

Interest revenue		$87,650		Accumulated depreciation—equipment		$41,650
Cash		52,650		Accumulated depreciation—buildings		29,650
Sales revenue		1,381,650		Notes receivable		156,650
Accounts receivable		151,650		Selling expenses		195,650
Prepaid insurance		21,650		Accounts payable		171,650
Sales returns and allowances		151,650		Bonds payable		101,650
Allowance for doubtful accounts		8,650		Administrative and general expenses		98,650
Sales discounts		46,650		Accrued liabilities		33,650
Land		101,650		Interest expense		61,650
Equipment		201,650		Notes payable		101,650
Buildings		141,650		Loss from earthquake damage		151,650
Cost of goods sold		622,650		Common stock		501,650
				Retained earnings		22,650

Assume the total effective tax rate on all items is 20%.

Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Answer 1