E4.7 (LO 2, 3, 5) (Income Statement) The accountant for Weatherspoon Shoe hascompiled the following information from the company's records as a basis for an incomestatement for the year ended December 31, 2022.Rent revenue£ 29,000Interest expense18,000Unrealized gain on non-trading equity securities, net of tax 31,000Selling expenses140,000Income tax30,600Administrative expenses181,000Cost of goods sold516,000Net sales980,000Cash dividends declared16,000Loss on sale of plant assets15,000There were 20,000 ordinary shares outstanding during the year.Instructionsa. Prepare a comprehensive income statement using the combined statement approach.b. Prepare a comprehensive income statement using the two statement approach.c. Which format do you prefer? Discuss.

A single statement Components of net income and total net income, the components of other…

a. Prepare a comprehensive income statement using the combined statement approach. b. Prepare a comprehensive income statement using the two statement approach. c. Which format do you prefer? Discuss.

a. Prepare a comprehensive income statement using the combined statement approach. b. Prepare a comprehensive income statement using the two statement approach. c. Which format do you prefer? Discuss.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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E4.7 (LO 2, 3, 5) (Income Statement) The accountant for Weatherspoon Shoe has
compiled the following information from the company's records as a basis for an income
statement for the year ended December 31, 2022.
Rent revenue
£ 29,000
Interest expense
18,000
Unrealized gain on non-trading equity securities, net of tax 31,000
Selling expenses
140,000
Income tax
30,600
Administrative expenses
181,000
Cost of goods sold
516,000
Net sales
980,000
Cash dividends declared
16,000
Loss on sale of plant assets
15,000
There were 20,000 ordinary shares outstanding during the year.
Instructions
a. Prepare a comprehensive income statement using the combined statement approach.
b. Prepare a comprehensive income statement using the two statement approach.
c. Which format do you prefer? Discuss.

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