The following information is taken from the trial balance of GlaxonSmith Supplies Ltd. at December 31, 2014, the company's year end. GlaxonSmith has a 25% tax rate. One of the entries making up the balance of retained earnings is an adjustment that was required due to the overstatement of prior year's depreciation expense by $1,600 which is net of tax effect. Instructions
Prepare the income statement and statement of retained earnings for GlaxonSmith for the year ended December 31, 2014 using the multiple-step format for the income statement.

Question

The following information is taken from the trial balance of GlaxonSmith Supplies Ltd. at December 31, 2014, the company's year end. GlaxonSmith has a 25% tax rate. One of the entries making up the balance of retained earnings is an adjustment that was required due to the overstatement of prior year's depreciation expense by $1,600 which is net of tax effect.  Instructions
Prepare the income statement and statement of retained earnings for GlaxonSmith for the year ended December 31, 2014 using the multiple-step format for the income statement.

Quizplus · Accepted Answer

The Answer of The following information is taken from the trial balance of GlaxonSmith Supplies Ltd. at December 31, 2014, the company's year end. GlaxonSmith has a 25% tax rate. One of the entries making up the balance of retained earnings is an adjustment that was required due to the overstatement of prior year's depreciation expense by $1,600 which is net of tax effect.  Instructions
Prepare the income statement and statement of retained earnings for GlaxonSmith for the year ended December 31, 2014 using the multiple-step format for the income statement.

The Following Information Is Taken from the Trial Balance of GlaxonSmith