Problem 189A The ledger of Jaime Corporation at December 31

Problem 18-9A The ledger of Jaime Corporation at December 31, 2017, contains the following summary data. Net sales Selling expenses Other revenues and gains 1,610,000 Cost of goods sold $1,170,000 154,000 28,700 117,000 Administrative expenses 19,500 Other expenses and losses Your analysis reveals the following additional information that is not included in the above data. 1. The entire Puzzles Division was discontinued on August 31. The income from operation for this division before income 2. 3. taxes was $22,200. The Puzzles Division was sold at a loss of $89,200 before income taxes. The company had an unrealized gain on available-for-sale securities of $118,500 before income taxes for the year. The income tax rate on all items is 23%. Prepare a statement of comprehensive income for the year ended December 31, 2017.

Solution

Statement of Comprehensive Income Net Sales $    1,610,000 Cost of Goods Sold $ (1,170,000) Gross Profit $       440,000 Selling & Administrative Expense [117000+154000] $     (271,000) Income from Operation $       169,000 Other Revenue & Gains $          19,500 Other Expenses & Losses $       (28,700) $          (9,200) Income before Income Tax $       159,800 Income Tax Expense ($159800*23%) $       (36,754) Income from Continuing Operation $       123,046 Discontinued Operation Income from Operation of discontinued business (after net of tax) $22000(1-0.23) $          16,940 Loss on sale of discontinued divison (after net saving of tax) $89,200(1-0.23) $       (68,684) $       (51,744) Income before extraordinary item $          71,302 Extraordinary Item Gain from expopriation, net of income tax $118500(1-0.23) $          91,245 net income $       162,547