E4-5 (L02,3) EXCEL (Multiple-Step and Single-Step Statements) Two accountants for the firm of Elwes and Wright arearguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussioninvolves the following 2017 information related to P. Bride Company ($000 omitted).Administrative expenseOfficers' salaries$ 4,900Depreciation of office furniture and equipment3,960Cost of goods soldRent revenueSelling expense60,57017,230Delivery expense2,690Sales commissions7,980Depreciation of sales equipment6,480Sales revenue96,500Income tax9,070Interest expense1,860Instructions(a) Prepare an income statement for the year 2017 using the multiple-step form. Common shares outstanding for 2017 total40,550 (000 omitted).(b) Prepare an income statement for the year 2017 using the single-step form.(c) Which one do you prefer? Discuss.

A.Prepare an income statement for the year 2017 using the multiple step form. Common shares…

related to P. Bride Company ($000 omitted). istrative expense ers' salaries reciation of office furniture and equipment goods sold venue $ 4,900 3,960 60,570 17,230 expense very expense 2,690 commissions 7,980 reciation of sales equipment 6,480 evenue 96,500 e tax 9,070 expense 1,860

related to P. Bride Company ($000 omitted). istrative expense ers' salaries reciation of office furniture and equipment goods sold venue $ 4,900 3,960 60,570 17,230 expense very expense 2,690 commissions 7,980 reciation of sales equipment 6,480 evenue 96,500 e tax 9,070 expense 1,860

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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Question

E4-5 (L02,3) EXCEL (Multiple-Step and Single-Step Statements) Two accountants for the firm of Elwes and Wright are
arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion
involves the following 2017 information related to P. Bride Company ($000 omitted).
Administrative expense
Officers' salaries
$ 4,900
Depreciation of office furniture and equipment
3,960
Cost of goods sold
Rent revenue
Selling expense
60,570
17,230
Delivery expense
2,690
Sales commissions
7,980
Depreciation of sales equipment
6,480
Sales revenue
96,500
Income tax
9,070
Interest expense
1,860
Instructions
(a) Prepare an income statement for the year 2017 using the multiple-step form. Common shares outstanding for 2017 total
40,550 (000 omitted).
(b) Prepare an income statement for the year 2017 using the single-step form.
(c) Which one do you prefer? Discuss.

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