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 2011 information related to P. Bride Company ($000 omitted). Administrative expense $ 4,900 3,960 60,570 17,230 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue 2,690 - 7,980 6,480 96,500 9,070. 1,860 lashotad Income tax 10 ber Interest expense Instructions (a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares out- standing for 2014 total 40,550 (000 omitted). (b) Prepare an income statement for the year 20 using the single-step form. (c) Which one do vou prefer? Discuss.
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 2011 information related to P. Bride Company ($000 omitted). Administrative expense $ 4,900 3,960 60,570 17,230 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue 2,690 - 7,980 6,480 96,500 9,070. 1,860 lashotad Income tax 10 ber Interest expense Instructions (a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares out- standing for 2014 total 40,550 (000 omitted). (b) Prepare an income statement for the year 20 using the single-step form. (c) Which one do vou prefer? Discuss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please remember common shares outstanding total 40,550 (000 omitted)
Transcribed Image Text: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 2011 information related to P. Bride Company ($000 omitted).
Administrative expense
Officers' salaries
Depreciation of office furniture and equipment
Cost of goods sold
Rent revenue
$ 4,900
3,960
60,570
17,230
blelenco
Selling expense
"Delivery expense
Sales commissions
2,690
-- 7,980
6,480
96,500
sei1o berl 9,070.
Depreciation of sales equipment
Sales revenue
nollamuaes 1ellob-
income tax
delgindb
Interest expense
1,860
Instructions
(a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares out-
standing for 2014 total 40,550 (000 omitted).
(b) Prepare an income statement for the year 20 using the single-step form.
(c) Which one do you prefer? Discuss.
Expert Solution
Step 1
Income statement is one of the financial statement which shows all incomes and all expenses of the business and at the end it shows net income or loss for the period. It can be prepared by single step form or multi step form.
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