Question

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2018,...

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2018, included the following income accounts: Account Title Debits Credits Sales revenue 2,560,000 Cost of goods sold 1,520,000 Selling and administrative expenses 438,000 Interest expense 52,000 Unrealized holding gains on investment securities 92,000 The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 40%. 1.2 million shares of common stock were outstanding throughout 2018.


Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2018, including appropriate EPS disclosures. (Round EPS answer to 2 decimal places.)

Homework Answers

Answer #1
SOLLUTION

Lindor Corporation

Statement of comprehensive income
For the Year Ended December 31, 2018
Sales Revenue $2,560,000.00
Less:-Cost of goods sold $1,520,000.00
Gross Profit $1,040,000.00
Operating expense
Less:Selling and Administrative Expense $438,000.00
Income From Operations $602,000.00
Other income and expenses
Less:- Interest Expense $52,000.00
Income before tax expense $550,000.00
Less:-Income Tax Expense @40% $220,000.00
Net Income $330,000.00
Other comprehensive income
Unrealized holding Gain on investment securities, net of tax $55,200.00 ($92000-($92000*40%)
Comprehensive income $385,200.00
Earnings per share
Net Income($330000/1200000) 0.2750
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