I do need help in exercise 4.6 for Accounting
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I do need help in exercise 4.6 for Accounting.
![E4.5 (LO 2) Excel
Parkves and Wright are arguing about the merits of presenting an income statement in a multiple-step
(Multiple-Step and Single-Step Statements) Two accountants for the firm
rus a single-step format. The discussion involves the following 2020 information related to P. Bride
a.
Company ($000 omitted).
Administrative expense
$ 4,900
Officers' salaries
Depreciation of office furniture and equipment
Cost of goods sold
096
60,570
17,230
Rent revenue
Selling expense
Delivery expense
069
7,980
Sales commissions
6,480
Depreciation of sales equipment
96,500
Sales revenue
9,070
Income tax
1,860
Interest expense
Instructions
a. Prepare an income statement for the year 2020 using the multiple-step form. Common shares out-
standing for 2020 total 40,550 (000 omitted).
b. Prepare an income statement for the year 2020 using the single-step form.
c. Which one do you prefer? Discuss.
E4.6 (LO 2, 3) (Multiple-Step Statement) The following balances were taken from the books of
Alonzo Corp. on December 31, 2020.
800 00
1000
Accumulated depreciation-equipment
$ 86,000
$ 40,000
Interest revenue
Cash
51,000
Accumulated depreciation-buildings
28,000
Sales revenue
1,380,000
Notes receivable
155,000
Accounts receivable
150,000
Selling expenses
194,000
170,000
Prepaid insurance
Sales returns and allowances
Allowance for doubtful accounts
000'0,
Accounts payable
Bonds payable
150,000
100,000
7,000
Administrative and general expenses
Sales discounts
Accrued liabilities
Land
100,000
Interest expense
Equipment
Buildings
Cost of goods sold
100,000
Notes payable
Loss from earthquake damage
200,000
140,000
150,000
621,000
Common stock
500,000
Retained earnings
21,000
Assume the total effective tax rate on all items is 20%.
Instructions
Prepare
a multiple-step income statement; 100,000 shares of common stock were outstanding during
the year.
has piled (Multiple-Step and Single-Step Statements) The accountant of Latifa Shoe Co.
the veare olowing information from the company's records as a basis for an income statement for
ended December 31, 2020,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7b9bc12-9bec-475d-bc99-e13d2a9b76e2%2Fd895d020-20b8-4d69-9730-43ed387481ad%2F4wqqss_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E4.5 (LO 2) Excel
Parkves and Wright are arguing about the merits of presenting an income statement in a multiple-step
(Multiple-Step and Single-Step Statements) Two accountants for the firm
rus a single-step format. The discussion involves the following 2020 information related to P. Bride
a.
Company ($000 omitted).
Administrative expense
$ 4,900
Officers' salaries
Depreciation of office furniture and equipment
Cost of goods sold
096
60,570
17,230
Rent revenue
Selling expense
Delivery expense
069
7,980
Sales commissions
6,480
Depreciation of sales equipment
96,500
Sales revenue
9,070
Income tax
1,860
Interest expense
Instructions
a. Prepare an income statement for the year 2020 using the multiple-step form. Common shares out-
standing for 2020 total 40,550 (000 omitted).
b. Prepare an income statement for the year 2020 using the single-step form.
c. Which one do you prefer? Discuss.
E4.6 (LO 2, 3) (Multiple-Step Statement) The following balances were taken from the books of
Alonzo Corp. on December 31, 2020.
800 00
1000
Accumulated depreciation-equipment
$ 86,000
$ 40,000
Interest revenue
Cash
51,000
Accumulated depreciation-buildings
28,000
Sales revenue
1,380,000
Notes receivable
155,000
Accounts receivable
150,000
Selling expenses
194,000
170,000
Prepaid insurance
Sales returns and allowances
Allowance for doubtful accounts
000'0,
Accounts payable
Bonds payable
150,000
100,000
7,000
Administrative and general expenses
Sales discounts
Accrued liabilities
Land
100,000
Interest expense
Equipment
Buildings
Cost of goods sold
100,000
Notes payable
Loss from earthquake damage
200,000
140,000
150,000
621,000
Common stock
500,000
Retained earnings
21,000
Assume the total effective tax rate on all items is 20%.
Instructions
Prepare
a multiple-step income statement; 100,000 shares of common stock were outstanding during
the year.
has piled (Multiple-Step and Single-Step Statements) The accountant of Latifa Shoe Co.
the veare olowing information from the company's records as a basis for an income statement for
ended December 31, 2020,
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