Multiple-Step and Single-Step Income Statements The following items were derived from Gold Company'sDecember 31 adjusted trial balance:E5-5LO 5.4LO 5.6Cost of goods soldSalesGeneral and administrative expenses%$101.000195,00020,000Loss from strike (pretax)Selling expensesInterest revenue$9,00028.000LO 5.84,000Additional danta:1. Seven thousand shares of common stock have been outstanding the entire year.2.The income tax rate is 30% on all items of income,Required:1. Prepare a multiple-step income statement.2. Prepare a single step income statement.3. Next Level Discuss how Gold Company's income statement in Requirement 1 might be different if it usedIFRS

Financial statement : Financial information is a written record of an organization and individual…

Multiple-Step and Single-Step Income Statements The following items were derived from Gold Company's December 31 adjusted trial balance: Cost of goods sold Sales $101,000 195,000 20,000 Loss from strike (pretax) Selling expenses Interest revenue $9,000 28,000 4,000 General and administrative expenses Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a multiple-step income statement. 2. Prepare a single step income statement. 3. Next Level Discuss how Gold Company's income statement in Requirement I might be different if it used IFRS.

Multiple-Step and Single-Step Income Statements The following items were derived from Gold Company's December 31 adjusted trial balance: Cost of goods sold Sales $101,000 195,000 20,000 Loss from strike (pretax) Selling expenses Interest revenue $9,000 28,000 4,000 General and administrative expenses Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a multiple-step income statement. 2. Prepare a single step income statement. 3. Next Level Discuss how Gold Company's income statement in Requirement I might be different if it used IFRS.

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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The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains $23,800 Other expenses and losses 4,000 Cost of goods sold 292,000 Sales discounts 4,600 Sales revenue 760,000 Operating expenses 221,000 Sales returns and allowances 10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.
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Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $586,000 $527,000 Cost of merchandise sold 345,740 279,310 Selling expenses 93,760 100,130 Administrative expenses 105,480 89,590 Income tax expense 17,580 21,080. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.
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Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $536,800 $440,000 Cost of merchandise sold 444,000 370,000 Gross profit $92,800 $70,000 Selling expenses $25,760 $23,000 Administrative expenses 22,800 19,000 Total operating expenses $48,560 $42,000 Income before income tax expense $44,240 $28,000 Income tax expenses 17,700 11,200 Net income $26,540 S16,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Increase Increase (Decrease) Previous year year (Decrease)
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