The partial trial balance of Lakewood Inc Included the follo

The partial trial balance of Lakewood Inc. Included the following accounts as of December 31, 2018 Debits Credits Sales revenue Interest revenue Gain on sale of investments Cost of goods sold Selling expenses Write-off of obsolete equipment Interest expense General and administrative expenses 2,050,000 85,000 55,000 1,300,000 245,000 35,000 5,000 55,000 Lakewood Inc. had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%. Required Prepare a single-step income statement with earnings per share disclosure. (Round EPS answer to 2 decimal places.) LAKEWOOD INC. Income Statement For the Year Ended December 31, 2018 Earnings per share:

Solution

Income statement for the year ended Dec 31 2018 Revenue Sales revenue $2,050,000 Interest Revenue 85000 Gain on sale of equipment 55000 Total Revenue and Gains $2,190,000 Expenses Cost of Good sold $1,300,000 Selling expenses 245000 Write off of obsolete equipment 35000 Interest expenses 45000 General & administrative expenses 55000 Total expenses $1,680,000 Income before taxes I $510,000 Income tax expenses (30%*I) $153,000 Net Income $357,000 Earning Per share $3.57 (357000/100000) If any doubt please comment. If satisfied you can rate