Income statement and retained earnings statement.Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information: The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a retained earnings statement.

Question

Income statement and retained earnings statement.Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information:  The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a retained earnings statement.

Quizplus · Accepted Answer

The Answer of Income statement and retained earnings statement.Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information:  The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a retained earnings statement.

Income Statement and Retained Earnings Statement