The trial balance of Lakewood Incorporated included the following accounts as of December 31, 2024: Debits Credits Sales revenue $ 1,350,000 Interest revenue 71,000 Gain on sale of investments 41,000 Cost of goods sold $ 740,000 Selling expense 175,000 Loss on inventory write-down 21,000 Interest expense 31,000 General and administrative expense 141,000 Lakewood Incorporated had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required: Prepare a single-step income statement Prepare a multiple-step income statement
The trial balance of Lakewood Incorporated included the following accounts as of December 31, 2024: Debits Credits Sales revenue $ 1,350,000 Interest revenue 71,000 Gain on sale of investments 41,000 Cost of goods sold $ 740,000 Selling expense 175,000 Loss on inventory write-down 21,000 Interest expense 31,000 General and administrative expense 141,000 Lakewood Incorporated had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required: Prepare a single-step income statement Prepare a multiple-step income statement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The
|
|
Debits |
Credits |
|
Sales revenue |
|
$ 1,350,000 |
|
Interest revenue |
|
71,000 |
|
Gain on sale of investments |
|
41,000 |
|
Cost of goods sold |
$ 740,000 |
|
|
Selling expense |
175,000 |
|
|
Loss on inventory write-down |
21,000 |
|
|
Interest expense |
31,000 |
|
|
General and administrative expense |
141,000 |
|
Lakewood Incorporated had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%.
Required:
- Prepare a single-step income statement
- Prepare a multiple-step income statement
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