Romney’s Marketing Company has the following adjusted trial balance at December 31, 2015. No dividends were declared. However, 540 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below: DebitCredit Cash $1,660 Accounts receivable 2,370 Interest receivable 250 Prepaid insurance 1,620 Notes receivable (long-term) 2,870 Equipment 16,400 Accumulated depreciation $2,990 Accounts payable 2,300 Accrued expenses payable 3,760 Income taxes payable 2,580 Unearned rent revenue 440 Common Stock (830 shares) 83 Additional paid-in capital 3,467 Retained earnings 4,860 Sales revenue 37,250 Interest revenue 190 Rent revenue 610 Wages expense 18,100 Depreciation expense 1,700 Utilities expense 320 Insurance expense 700 Rent expense 9,800 Income tax expense 2,740 Total $58,530 $58,530 Prepare a multi-step income statement for 2015. Include earnings per share. (Round your earnings per share to 2 decimal places. ) Income StatementFor the Year Ended December 31, 2015Operating revenues:Sales revenueTotal operating revenuesOperating expenses:Wages expenseDepreciation expenseUtilities expenseInsurance expenseRent expenseTotal operating expensesOperating incomeOther items:Income taxes expenseInterest revenueRent revenueCommon stockEarnings per share$37,25037,25018,1001,7003207009,80030,6206,6302,74019061010,170540

Multi Step Income Statement :— It Requires Multiple steps to compute net income. First Step is…

Answered: Prepare a multi-step income statement…

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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Romney’s Marketing Company has the following adjusted trial balance at December 31, 2015. No dividends were declared. However, 540 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below:

	Debit	Credit
Cash		$	1,660
Accounts receivable			2,370
Interest receivable			250
Prepaid insurance			1,620
Notes receivable (long-term)			2,870
Equipment			16,400
Accumulated depreciation				$	2,990
Accounts payable					2,300
Accrued expenses payable					3,760
Income taxes payable					2,580
Unearned rent revenue					440
Common Stock (830 shares)					83
Additional paid-in capital					3,467
Retained earnings					4,860
Sales revenue					37,250
Interest revenue					190
Rent revenue					610
Wages expense			18,100
Depreciation expense			1,700
Utilities expense			320
Insurance expense			700
Rent expense			9,800
Income tax expense			2,740

Total		$	58,530	$	58,530

Prepare a multi-step income statement for 2015. Include earnings per share. (Round your earnings per share to 2 decimal places. )

Income Statement
For the Year Ended December 31, 2015
Operating revenues:
Sales revenue
Total operating revenues
Operating expenses:
Wages expense
Depreciation expense
Utilities expense
Insurance expense
Rent expense
Total operating expenses
Operating income
Other items:
Income taxes expense
Interest revenue
Rent revenue
Common stock
Earnings per share
$
37,250
37,250
18,100
1,700
320
700
9,800
30,620
6,630
2,740
190
610
10,170
540

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