Reference no: EM132487670

Presented below is information related to the Wiley Company for 2019.

Retained earnings, December 31, 2018                                     $ 650,000

Sales                                                                                 1,400,000

Selling and administrative expenses                                           240,000

Hurricane loss (pre-tax) on plant (extraordinary item)                   250,000

Cash dividends declared on common stock                                   33,600

Cost of goods sold                                                                    820,000

Gain resulting from calculation error on amortization charge in 2010 (pre-tax) 520,000

Other revenue                                                                        60,000

Other expenses                                                                        50,000

Question 1: Prepare in good form a multiple-step income statement for the year 2019. Assume a 20 percent tax rate and that 50,000 shares of common stock were outstanding during the year.

Also:

Question 2: A single-step income statement for 2010 showing operating expenses by nature (type). Include EPS calculation. Wiley Company has 10,000 common shares outstanding.

Wiley Company had net sales of $2,780,000 and investment revenue of $103,000 in 2010. Its 2010 expenses were as follows;

Cost of Goods Sold $2,190,000                  Wages-Admin $142,000

Wages- Salespeople 175,000                     Rent 48,000

Advertising & Promotion 60,000                   Utilities 21,000

Entertainment 37,000                                Administrative Expenses $211,000

Selling Expenses $ 272,000

Interest expense $76,000                             Income tax expense $40,000