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I do need help in exercise 4.6 for Accounting

I do need help in exercise 4.6 for Accounting

FINANCIAL ACCOUNTING
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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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,
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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