8.2 Income Statement
8.2.1 Introduction to Income Statement
The income statement of a corporation includes the same types of revenues and expenses as companies organized as sole proprietors and partnerships with one difference. A corporation is a legal entity and therefore,it must pay taxes.
Multiple-step Income Statement
XYZ Corporation Income Statement
For the Year Ended December 31,2017
Net Sales |
Sales |
Less:Sales returns and allowances |
Cost of Goods Sold |
Gross Profit |
Selling,General and Administrative Expenses |
Salaries |
Advertising expenses |
Taxes and insurance |
Depreciation and amortization expense |
Bad debts expense |
Other selling,general and administrative expenses |
Operating Income (Loss) |
Other Revenues and Gains |
Interest income |
Gain on sale of investment |
Other Expenses and Losses |
Interest expense |
Loss on sale of equipment |
Income (Loss) from Continuing Operations before Income Taxes |
Income Taxes Expense |
Income (Loss) from Continuing Operations |
Discontinued Operations: |
Gain(Loss) from operations of discontinued business segment (Net of income tax effect of $) |
Gain(Loss) on disposal of business segment (Net of income tax effect of $) |
Extraordinary Gain(Loss) from Early Extinguishment of Debts (Net of income tax effect of $) |
Net Income (Loss) |
Earnings per Common Share: |
Income from Continuing Operations |
Discontinued Operations |
Extraordinary Gain(Loss) |
Net Income(Loss) |
These additional special items may be one of three types:discontinued operations,extraordinary items,and changes in accounting principles.
