Sales
|
$xxx
|
|
|
Less: Sales discounts
|
|
$xxx
|
|
|
Sales returns and allowances
|
|
xxx
|
(xxx)
|
|
Net sales
|
|
|
$xxx
|
|
Cost of goods sold
|
|
|
xxx
|
|
Gross profit
|
|
|
$xxx
|
|
Operating expenses:
|
|
|
|
|
Selling expenses
|
|
|
|
|
Sales salaries
|
$xxx
|
|
|
|
Commissions
|
xxx
|
|
|
|
Advertising expense
|
xxx
|
|
|
|
Delivery expense
|
xxx
|
|
|
|
Selling supplies expense
|
xxx
|
|
|
|
Depreciation of store furniture and equipment
|
xxx
|
$xxx
|
|
|
General and administrative expenses
|
|
|
|
|
Officers’ salaries
|
$xxx
|
|
|
|
Office salaries
|
xxx
|
|
|
|
Bad debts expense
|
xxx
|
|
|
|
Office supplies expense
|
xxx
|
|
|
|
Depreciation of office furniture and fixtures
|
xxx
|
|
|
|
Depreciation of building
|
xxx
|
|
|
|
Insurance expense
|
xxx
|
|
|
|
Utilities expense
|
xxx
|
xxx
|
|
|
Total operating expense
|
|
(xxx)
|
|
|
Operating income
|
|
|
|
|
Other revenues:
|
|
|
$xxx
|
|
Dividend income
|
|
$xxx
|
|
|
Gain on business acquisition (“bargain purchase”)
|
|
xxx
|
|
|
Interest income
|
|
xxx
|
xxx
|
|
Other expenses:
|
|
|
|
|
Interest expense
|
|
|
(xxx)
|
|
Income from continuing operations
|
|
|
$xxx
|
Example 5.3: A Single‐Step Format for Income from Continuing Operations
|
Revenues:
|
|
Sales (net of discounts and returns and allowances)
|
$xxx
|
|
|
Gain on sale of equipment
|
xxx
|
|
|
Interest income
|
xxx
|
|
|
Dividend income
|
xxx
|
$xxx
|
|
Expenses:
|
|
Cost of goods sold
|
$xxx
|
|
|
Selling expenses
|
xxx
|
|
|
General and administrative expenses
|
xxx
|
|
|
Interest expense
|
xxx
|
xxx
|
|
Income from continuing operations
|
|
xxx
|
Example 5.4: Combined Statement of Income and Comprehensive Income with “Net of Tax” Presentation
|
Hypothetical Corporation Statement of Comprehensive Income for the Year Ended December 31, 20X1 ($000 omitted)
|
