Reference no: EM1319601

The following information was taken from the records of Roland Carlson Inc. for the year 2007. Income tax applicable to income from continuing operations $187,000; income tax applicable to loss on discontinued operations $25,500; Income tax applicable to extraordinary gain $32,300; Income tax applicable to extraordinary loss $20,400; and unrealized holding gain on available-for-sale securities $15,000.

Extraordinary gain	$95,000
Loss on discontinued operation	75,000
Administrative expenses	240,000
Rent revenue	40,000
Extraordinary loss	60,000
Cash dividends declared	$150,000
Retained earnings January 1, 2007	600,000
Cost of goods sold	850,000
Selling expenses	300,000
Sales	1,900,000

Shares outstanding during 2007 were 100,000.

Instructions:

a) Prepare a single-step income statement for 2007.

b) Prepare a retained earnings statement for 2007.

c) Show how comprehensive income is reported using the second income statement format.