Multiple-Step Income Statement
Presented Below Is Information Related to Pastry

question 96

Essay

Multiple-step income statement
Presented below is information related to Pastry Inc.
$\begin{array}{llcc} \text {Retained earnings, December 31, 2019 ......................................................... } & \$650,000 \\ \text {Sales ............................................................................................................ } &1,400,000\\ \text {Selling and administrative expenses ............................................................. } &240,000\\ \text {Hurricane loss (pre-tax) on plant.................................................................. } &250,000\\ \text {Cash dividends declared on common shares.................................................. } &33,600\\ \text { Cost of goods sold........................................................................................ } &820,000\\ \text { Gain resulting from calculation error on depreciation } &\\ \text {charge in 2019 (pre-tax) .............................................................................. } &520,000\\ \text {Other revenue.............................................................................................. } &60,000\\ \text {Other expenses............................................................................................ } &50,000\\\end{array}$
Instructions
In good form, prepare a multiple-step income statement for the year 2020. Assume a 20% tax rate and that 50,000 common shares were outstanding during the year. Pastry is a private corporation following ASPE.

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