Reference no: EM133109846

Question - The following information is taken from the accounting records of Pharoah Corporation, a Canadian public company, for the year ended December 31, 2020.

Accounts receivable $86,500

Retained earnings, January 1, 2020 253,000

Loss on operation of discontinued operations (before tax) 100,000

Sales revenue 1,254,500

Cost of goods sold 724,000

Selling expenses 130,000

Cash 70,500

Common shares (19,000 common shares outstanding) 190,000

Dividend revenue 13,300

Inventory 124,000

Unearned revenue 4,100

 Land 370,000

Interest expense 20,000

Administrative expenses 160,000

Notes payable (maturity 2026) 180,000

Accounts payable 73,000

Gain on disposal of discontinued operations (before tax) 154,000

Depreciation expense 49,000

Loss on disposal of equipment (before tax) 11,000

Pharoah Corporation is subject to a 25% income tax rate.

Required - Prepare a multiple-step income statement in good form for Pharoah Corporation (earnings per share information is not required).