Question

The following is a partial trial balance for the Green Star Corporation as of December 31, 2013: Account Title Debits Credits Sales revenue 1,550,000 Interest revenue 38,000 Gain on sale of investments 58,000 Cost of goods sold 770,000 Selling expense 200,000 General and administrative expenses 83,000 Interest expense 48,000 Income tax expense 138,000 110,000 shares of common stock were outstanding throughout 2013.Required:1. Prepare a single-step income statement for 2013, including EPS disclosures. (Round EPS answer to 2 decimal places.)2. Prepare a multiple-step income statement for 2013, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

Answer 1

Answer:

Explanation:

The total revenues and total expenditures are reported in the income statement.  

If the total income exceeds total expenditure then the company earns net income And if the total income is below the total expenditure then the company has a net loss This net income or net loss would be expressed in the retained earnings account statement.

The preparation of the income statement i.e single as well as multiple step are presented in the spreadsheet. Please find the attachment underneath.