Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: Sales $142,000 Interest revenue $3,300
Purchases returns 5,200 Purchases discounts taken 2,700
Gain on sale of
equipment (pretax) 3,800 Inventory, January 1, 2019 12,200
Freight-in 3,400 Purchases 89,700
Selling expenses 15,600 Administrative expenses 24,500
Unrealized increase in
fair value of available- Loss from truck accident
for-sale securities 2,400 (pretax) 6,500
The following additional information is also available. The December 31, 2019, ending inventory is $14,700. During 2019, 4,200 shares of common stock were outstanding the entire year. The income tax rate is 30% on all items of income.
1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskin's cost of goods sold.
GASKIN COMPANY
Schedule 1: Cost of Goods Sold
For Year Ended December 31, 2016
2. Prepare a single-step income statement for the year ended December 31, 2016. Disregard EPS disclosure.
3. Prepare a multiple-step income statement for the year ended December 31, 2016. Disregard EPS disclosure.
4. Prepare a statement of comprehensive income for the year ended December 31, 2016.