Minnie’s Inc. adjusted trial balance contains the following account balances at
ID: 2419455 • Letter: M
Question
Minnie’s Inc. adjusted trial balance contains the following account balances at December 31, 2015:
Cost of goods sold $250,000
Depreciation expense $ 7,000
Loss on sale of equipment $ 5,000
Rent expense $12,000
Sales $ 410,000
Sales commissions $ 34,000
Sales discounts $ 22,000
Unrealized decrease in value of available for sale securities $12,000
Income taxes are 30% on all items, and there were 2,000 shares of common stock outstanding during the year.
Required:
Prepare a statement of comprehensive income for 2015.
Explanation / Answer
MINNIES' INC STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2015 Sales Revenue 354,000 Cost Of Goods Sold 250,000 Gross Profit 104,000 Operating Expenses 19,000 Operating Profit 85,000 Loss on Sale of Equipment 5,000 Profit before tax 80,000 Tax Expense 24,000 Net Income 56,000 Other Comprehensive Income: Unrealized holding loss-available for sale securities, net of tax -8400 Comprehensive Income 47,600 Per Share of Common Stock: Net Income 28.0 Other Comprehensive Income -4.2 Comprehensive Income 23.8