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89. The trial balance of Lakewood Inc. included the following accounts

Question : 89. The trial balance of Lakewood Inc. included the following accounts : 1412615

 

 

89.

The trial balance of Lakewood Inc. included the following accounts as of December 31, 2016:
 

 

Debits

Credits

Sales revenue

 

1,800,000

Interest revenue

 

800,000

Gain on sale of investments

 

50,000

Cost of goods sold

1,100,000

 

Selling expenses

220,000

 

Write-off of obsolete equipment

30,000

 

Restructuring costs

150,000

 

Interest expense

40,000

 

General and administrative expenses

50,000

 


Lakewood Inc. had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.

Required:

Prepare a single-step income statement with earnings per share disclosure.  
 
 

 

 

 

 

90.

The trial balance of Lakewood Inc. included the following accounts as of December 31, 2016:

 

 

Debits

Credits

Sales revenue

 

1,800,000

Interest revenue

 

800,000

Gain on sale of investments

 

50,000

Cost of goods sold

1,100,000

 

Selling expenses

220,000

 

Write-off of obsolete equipment

30,000

 

Restructuring costs

150,000

 

Interest expense

40,000

 

General and administrative expenses

50,000

 


Lakewood Inc. had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.

Required:

Prepare a multiple-step income statement with earnings per share disclosure.  
 
 

 

 

 

 

 

Solution
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