Plano Co. 12/31/2018 Partial Trial Balance Data sales revenue Interest revenue G
ID: 2405740 • Letter: P
Question
Plano Co. 12/31/2018 Partial Trial Balance Data sales revenue Interest revenue Gain on sale of investments Cost of goods sold Selling expenses Interest expense General and administrative expenses Debits Credits 700,000 60,000 110,000 500,000 150,000 30,000 60,000 Plano had 50,000 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. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)Explanation / Answer
Plano Co.
Income statement
For the year ended December 31,2018
Sales revenue 700000 Cost of goods sold 500000 Gross profit 200000 Operating expenses Selling expenses 150,000 General and administrative expenses 60,000 Total operating expenses 210000 Operating income (10,000) Other income (expense) Interest revenue 60,000 Gain on sale of investments 110,000 Interest expense (30,000) Total other income, net 140,000 Income before income taxes 130,000 Income tax expense (39,000) Net income 91,000 Earnings per share 1.82 (91,000/50000)