Join the IDNLearn.com community and start finding the answers you need today. Our platform offers reliable and comprehensive answers to help you make informed decisions quickly and easily.
Answer:
A. $196,600
B. $196,600
Explanation:
A. Preparation of a statement of comprehensive income using the one statement format.
SKYSONG CORPORATION Statement of Comprehensive Income For the Year Ended
Sales revenue $1,236,500
Less Cost of goods sold ($732,900)
Gross profit $503,600
($1,236,500-$732,900)
Selling and administrative expenses $331,400
Net income $172,200
($503,600-$331,400)
Add Unrealized holding gain, net of tax $24,400
Comprehensive income $196,600
($172,200+$24,400)
Therefore the statement of comprehensive income using the one statement format will be $196,600
(b) Preparation of a statement of comprehensive income using the two statement format
SKYSONG CORPORATION Income Statement and Comprehensive Income Statement For the Year Ended
Sales $1,236,500
Cost of goods sold ($732,900)
Gross profit $503,600
($1,236,500-$732,900)
Selling and administrative expenses $331,400
Net income $172,200
($503,600-$331,400)
COMPREHENSIVE INCOME
Net income $172,200
Unrealized holding gain $24,400
Comprehensive income $196,600
($172,200+$24,400)
Therefore the statement of comprehensive income using the two statement format will be $196,600