Exercise 4-5 (Algo) Income statement presentation [LO4-1] The following single-step income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2024 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold Selling expense Administrative expense Interest expense Restructuring costs Income tax expense Total expenses and losses Net Income $ 375,000 69,000 89,000 26,000 65,000 49,250 $ 690,000 42,000 89,000 821,000 673,250 $ 147,750 Required: Prepare a multiple-step income statement applying generally accepted accounting principles. The income tax rate is 25%.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 4-5 (Algo) Income statement presentation [LO4-1]
The following single-step income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2024
Revenues and gains:
Sales revenue
Interest revenue
Gain on sale of investments
Total revenues and gains
Expenses and losses:
Cost of goods sold
Selling expense
Administrative expense
Interest expense
Restructuring costs
Income tax expense
Total expenses and losses
Net Income
$ 375,000
69,000
89,000
Gross profit
Operating expenses:
26,000
65,000
49,250
$ 690,000
42,000
89,000
821,000
Required:
Prepare a multiple-step income statement applying generally accepted accounting principles. The income tax rate is 25%.
AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2024
673,250
$ 147,750
0
Transcribed Image Text:Exercise 4-5 (Algo) Income statement presentation [LO4-1] The following single-step income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATION Income Statement For the Year Ended December 31, 2024 Revenues and gains: Sales revenue Interest revenue Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold Selling expense Administrative expense Interest expense Restructuring costs Income tax expense Total expenses and losses Net Income $ 375,000 69,000 89,000 Gross profit Operating expenses: 26,000 65,000 49,250 $ 690,000 42,000 89,000 821,000 Required: Prepare a multiple-step income statement applying generally accepted accounting principles. The income tax rate is 25%. AXEL CORPORATION Income Statement For the Year Ended December 31, 2024 673,250 $ 147,750 0
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