Wiley GAAP: Financial Statement Disclosure Manual. Joanne M. Flood

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

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Hypothetical Corporation Statement of Comprehensive Income for the Year Ended December 31, 20X1 ($000 omitted)