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GAAP Multi-Step Income Statement Guide

The document provides instructions for completing a multi-step GAAP Income Statement in Excel using the provided data for Nguyen Corp for the year ended December 31, 2025. It outlines that the Income Statement should start in cell F24 and include 51 cells graded for accuracy. Tips are provided on formatting requirements and ordering line items alphabetically when there are multiple items in a category. The data includes account balances for revenues, expenses, gains/losses, tax rate and shares outstanding information.

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mohammedbudul18
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232 views3 pages

GAAP Multi-Step Income Statement Guide

The document provides instructions for completing a multi-step GAAP Income Statement in Excel using the provided data for Nguyen Corp for the year ended December 31, 2025. It outlines that the Income Statement should start in cell F24 and include 51 cells graded for accuracy. Tips are provided on formatting requirements and ordering line items alphabetically when there are multiple items in a category. The data includes account balances for revenues, expenses, gains/losses, tax rate and shares outstanding information.

Uploaded by

mohammedbudul18
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Requirements:

1) Using the data below, create a multi-step GAAP Income Statement in appropriate professional Excel
format (i.e., use cell referencing and formulas, no hard coding numbers).

2) All account titles and subtotals should be added using cell referencing.

Grading: 10 possible points


This spreadsheet contains macros which will provide real time feedback on EACH cell that you enter in
the Solution. There are 51 cells which get graded, and your score

on this assignment will be calculated based upon the % of the 51 cells that are completed correctly.

Tips:
1) The P&L header should start in cell F24 and the first line of data should be in row 28. The Earnings Per
Share header should be in cell F49 with the first line of data in row 50

2) All expenses should be included as negative numbers

3) Values included in financial statements have standard formatting requirements. Examples in your
textbook and class follow the standard formatting (i.e., number of decimals, if a value is number or $
format). If you receive an error message about formatting, please refer to the "tip" provided rows 1 and 2
of the spreadsheet.
4) If there is more than one line item in a category in the P&L where there is flexibility in the order, list
the line items in alphabetical order

5) All amounts should be included in column G

6) Earnings Per Share should be taken to two decimal places


0
Data
Nguyen Corp
12/31/2025
Debit Credit
Common Dividends Paid $80,000
Cost of Goods Sold $1,050,000
Dividend revenue $60,000
Gain on Sale of Discontinued Operations $75,000
Gain on Sale of Equipment $70,000
Restructuring charge $10,000
Interest Expense $100,000
Loss on Discontinued Operations $200,000
Net Sales Revenue $2,070,000
Preferred Dividends Paid $100,000
Selling & Admin Expense $540,000

Additional information:
Tax rate 20%
Common Shares Outstanding 12/31/25 1,000,000
Preferred Shares Outstanding 12/31/25 800,000

Possible account titles and subtotal headings for the P&L


(cell reference from here, some may be used more than once)
Cost of Goods Sold
Discontinued Operations
Dividend Revenue
Earnings per share
Gain on Sale of Discontinued Operation
Gain on Sale of Equipment
Gross Margin
Income from Continuing Operations
Income from Continuing Operations Before Taxes
Solution
Nguyen Corp
Income Statement
Year Ended 12/31/25

Net Sales Revenue $2,070,000


Cost of Goods Sold -1,050,000
Gross Margin 1,020,000
Selling & Administrative Expenses -540,000
Income from Operations 480,000

Other Revenues and Gains 130,000


Dividend Revenue 60,000

Gain on Sale of Equipment 70,000

Other Expenses and Losses 110,000


Interest Expense -100,000
Restructuring Charge -10,000
Income from Continuing Operations Before Taxes 500,000
Less Income Tax Expense -100,000
Income from Continuing Operations 400,000
Discontinued Operations

Gain on Sale of Discontinued Operation 75,000


Loss on Discontinued Operations -200,000
Net tax benefit on disc operations

Total Discontinued Operations After Tax (100,000)


$
Net Income 300,000

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