P13-28A Preparing a detailed income statement [25–35 min]
The following information was taken from the records of Clarkson Motorsports,
Inc., at November 30, 2012
Selling expenses $125,000
General expenses 134,000
Income from discontinued operations 5,000
Retained earnings, beginning 90,000
Cost of goods sold 430,000
Treasury stock, common
(1,000 shares) 11,000
Net sales revenue 834,000
Common stock, $10 par, 21,000
shares authorized and issued $210,000
Preferred stock, $4, no-par
6,000 shares issued 240,000
Income tax expense:
Continuing operations 70,000
Income from discontinued 2,000
operations
Requirement
1. Prepare a multi-step income statement for Clarkson Motorsports for the fiscal
year ended November 30, 2012. Include earnings per share.
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