Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at December 31, 2019. Required: 1. Prepare a single-step income statement for the year ended December 31, 2019. 2. Prepare a multiple-step income statement for the year ended December 31, 2,019. 3. CONCEPTUAL CONNECTION Comment on the differences between the single-step and the multiple-step income statements.

Question

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Answer 1

Textbook Question

Chapter 1, Problem 48E

Exercise 1-48 Income Statement

The following information is available for Wright Auto Supply at December 31, 2019.

Chapter 1, Problem 48E, Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at

Required:

1. Prepare a single-step income statement for the year ended December 31, 2019.

2. Prepare a multiple-step income statement for the year ended December 31, 2,019.

3. CONCEPTUAL CONNECTION Comment on the differences between the single-step and the multiple-step income statements.

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

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Students have asked these similar questions

6. The following is the adjusted trial balance data for Nino's Pizzenia as of December 31, 2019. NINO'S PIZZERIA Adjusted Trlal Balance Year Ended December 31,2019 Debit Credit S 775,984 45,688 200,460 135,624 Cash Accounts Receivable Buildings Merchandise Inventory Accounts Payable Common Stock Sales Interest Revenue Rent Revenue Sales Salaries Expense office Supplies Expense Sales Discounts Interest Expense Sales Returns and Allowances, Cost of goods sold Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $437,880 410,542 555,696 84,652 86,900 24,500 6,270 102,890 4,577 105.854 122,853 20.000 10.555 2,780 17:635 $1,575,670 $1,575,670

a,b, and c please

The income statement line gross profit will appear on which income statement format? Select one: a. Receipt and payment account b. Multiple step income statement c. Single step income statement d. Income and expenditure account

Answer 2

Textbook Question

Chapter 1, Problem 48E

Exercise 1-48 Income Statement

The following information is available for Wright Auto Supply at December 31, 2019.

Chapter 1, Problem 48E, Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at

Required:

1. Prepare a single-step income statement for the year ended December 31, 2019.

2. Prepare a multiple-step income statement for the year ended December 31, 2,019.

3. CONCEPTUAL CONNECTION Comment on the differences between the single-step and the multiple-step income statements.

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

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Answer 3

Textbook Question

Chapter 1, Problem 48E

Exercise 1-48 Income Statement

The following information is available for Wright Auto Supply at December 31, 2019.

Chapter 1, Problem 48E, Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at

Required:

1. Prepare a single-step income statement for the year ended December 31, 2019.

2. Prepare a multiple-step income statement for the year ended December 31, 2,019.

3. CONCEPTUAL CONNECTION Comment on the differences between the single-step and the multiple-step income statements.

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

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Answer 4

Textbook Question

Chapter 1, Problem 48E

Exercise 1-48 Income Statement

The following information is available for Wright Auto Supply at December 31, 2019.

Chapter 1, Problem 48E, Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at

Required:

1. Prepare a single-step income statement for the year ended December 31, 2019.

2. Prepare a multiple-step income statement for the year ended December 31, 2,019.

3. CONCEPTUAL CONNECTION Comment on the differences between the single-step and the multiple-step income statements.

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Answer 8

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-1:

To Prepare:

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer 13

Answer to Problem 48E

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses		$ 509,720

Net Income		$ 75,880

Answer 14

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Answer 15

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-2:

To Prepare:

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019.

Answer 20

Answer to Problem 48E

The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Answer 21

Explanation of Solution

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

Answer 22

Expert Solution

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

To determine

Concept Introduction:

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Requirement-3:

To Indicate:

The difference between the multi step and single step Income Statements.

Answer 27

Answer to Problem 48E

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

Answer 28

Explanation of Solution

The difference between the multi step and single step Income Statements is explained as follows:

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items. The multi step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Multi Step Income Statement
For the year ended Dec. 31, 2019
Sales Revenue	$ 585,600
Less: Cost of goods sold	$ 292,000
Gross Profit		$ 293,600
Less: Selling and Administrative expenses:
Depreciation expense	$ 31,250
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Selling and Administrative expenses:		$ 182,800
Operating income		$ 110,800
Less: Interest expense		$ 2,400
Income before tax		$ 108,400
Less: Income tax expense		$ 32,520
Net income		$ 75,880

The single step Income Statement for Wright Auto Supply for the year ended Dec. 31, 2019 is prepared as follows:

Wright Auto Supply
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Sales Revenue		$ 585,600

Total Revenues (A)
Less: Expenses:
Cost of goods sold	$ 292,000
Depreciation expense	$ 31,250
Interest expense	$ 2,400
Income tax expense	$ 32,520
Rent Expense	$ 21,000
Salaries expenses (Admn.)	$ 33,800
Wages expense (Sales)	$ 96,750
Total Expenses (B)		$ 509,720

Net Income (A-B)		$ 75,880