Reference no: EM131783623

Question - The following is a partial trial balance for General Lighting Corporation as of December 31, 2011:

account title debits credits

sales revenue 2,350,000

rental revenue 80,000

loss on sale of equipment 22,500

loss from flood damage 120,000

cost of goods sold 1,200,300

loss from write down of inventory 200,000

(due to obsolescence)

salaries expense 300,000

depreciation expense 100,000

interest expense 90,000

rent expense 50,000

300,000 shares of common stock were outstanding throughout 2011. Income tax expense has not yet been accrued. The income tax rate is 40%.

Required:

1. Prepare a single-step income statement for 2011, including EPS disclosures.

2. Prepare a multiple-step income statement for 2011, including EPS disclosures.