Reference no: EM131810414
The Andrew Company, a seller of toy trains and cars has asked you to prepare a multistep income statement for the period ended December 31, 2016. The Trial Balance as it relates to the income statement accounts is as follows:
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Cr
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Sales Revenue
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$3,000,000
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Sales returns and allowances
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$150,000
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Cost of Goods Sold
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$810,000
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Selling Expenses
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$400,000
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Administrative Expenses
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$240,000
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Rent Revenue
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$50,000
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Loss on sale of machinery
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$29,000
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In addition on January 1, 2016 the company decided to sell its toy airplane division. It recorded a profit before tax of $250,000 up until September 31st when it sold the division to the Jake Company. Andrew Company recorded a loss on thesale of $325,000.
On July 12, 2016 a fire destroyed one of Andrew Company's warehouses. The loss totaled $400,000 and was considered unusual and infrequent in nature.
The tax rate is 34% During the year there were 100,000 shares of common stock outstanding.
Required:
• Prepare a multistep income statement for Andrew Company. Form counts!! Use proper headings.
• Include an EPS section separating Income from operations and discontinued operations.
• Please submit in excel. Handwritten assignments will lose 1 point.