ACC 421Intermediate Financial Accounting I Axia College of University of Phoenix

ACC 421Intermediate Financial Accounting I Axia College of University of Phoenix (UoP)Intermediate Accounting Weygandt Kieso Warfield Week Three (Week 3) Exercise 4-16 (E4-16) (Various Reporting Formats) The following information was taken from the records of Roland Carlson Inc. for the year 2007. Income tax applicable to income from continuing operations $187000; income tax applicable to loss on discontinued operations $25500; income tax applicable to extraordinary gain $32300; income tax applicable to extraordinary loss $20400; and unrealized holding gain on available-for-sale securities 15000. Extraordinary gain $ 95000 Cash dividends declared $ 150000 Loss on discontinued operations 75000 Retained earnings January 1 2007 600000 Administrative expenses 240000 Cost of goods sold 850000 Rent revenue 40000 Selling expenses 300000 Extraordinary loss 60000 Sales 1900000 Shares outstanding during 2007 were 100000. Instructions (a) Prepare a single-step income statement for 2007. (b) Prepare a retained earnings statement for 2007. (c) Show how comprehensive income is reported using the second income statement format.