1. What are the total Expenses under the single-step income statement?a. 389,816b. $85,710c. 856,589d. $115,7102. What is Net income?a. $ 85,710b. $505,526c. $972,299d. $115,7103. What is the other expenses?a. 18,500b. 10,799c. 16,198d. 30,000 B-05.10Single-step and multiple-step income statementsStober's Lawn Sprinkler Company sells irrigation equipment. Below is information necessary to prepare Sto-ber's income statement for the year ending December 31, 20X7. Stober attributes 60% of the rent and utili-ties to selling functions, and the remainder to general and administrative activities. Seventy percent of thesalaries are devoted to sales. Prepare an income statement in both single-step and multiple-step formats.Advertising expenseCost of goods soldRent expenseSalaries expenseNet salesIncome tax expenseUtilities expenseInterest expense$33,998466,773144,000166,321972,29930,00026,99718,500

The single step income statement represents the total expenses at the one place. The income is…

What are the total Expenses under the single-step income statement? a. 389,816 b. $85,710 c. 856,589 d. $115,710 2. What is Net income? a. $ 85,710 b. $505,526 c. $972,299 d. $115,710 3. What is the other expenses? a. 18,500 b. 10,799 c. 16,198

What are the total Expenses under the single-step income statement? a. 389,816 b. $85,710 c. 856,589 d. $115,710 2. What is Net income? a. $ 85,710 b. $505,526 c. $972,299 d. $115,710 3. What is the other expenses? a. 18,500 b. 10,799 c. 16,198

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

100%

1. What are the total Expenses under the single-step income statement?

a. 389,816

b. $85,710

c. 856,589

d. $115,710

2. What is Net income?

a. $ 85,710

b. $505,526

c. $972,299

d. $115,710

3. What is the other expenses?

a. 18,500

b. 10,799

c. 16,198

d. 30,000

B-05.10
Single-step and multiple-step income statements
Stober's Lawn Sprinkler Company sells irrigation equipment. Below is information necessary to prepare Sto-
ber's income statement for the year ending December 31, 20X7. Stober attributes 60% of the rent and utili-
ties to selling functions, and the remainder to general and administrative activities. Seventy percent of the
salaries are devoted to sales. Prepare an income statement in both single-step and multiple-step formats.
Advertising expense
Cost of goods sold
Rent expense
Salaries expense
Net sales
Income tax expense
Utilities expense
Interest expense
$33,998
466,773
144,000
166,321
972,299
30,000
26,997
18,500

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