E4.7 (LO 2, 3) (Multiple-Step and Single-Step Statements) The accountant of Latifa Shoe Co. has piled the following information from the company's records as a basis for an income statement for the year ended December 31, 2020. Rent revenue $ 29,000 Interest expense 18,000 Market appreciation on land above cost Salaries and wages expense (selling) 31,000 114,800 Supplies (selling) 17,600 Income tax 23,100 Salaries and wages expense (administrative) Other administrative expenses 135,900 51,700 Cost of goods sold 496,000 980,000 Net sales Depreciation on plant assets (70% selling, 30% administrative) Cash dividends declared 65,000 16,000 There were 20,000 shares of common stock outstanding during the year. Instructions a. Prepare a multiple-step income statement. b. Prepare a single-step income statement. c. Which format do you prefer? Discuss.
E4.7 (LO 2, 3) (Multiple-Step and Single-Step Statements) The accountant of Latifa Shoe Co. has piled the following information from the company's records as a basis for an income statement for the year ended December 31, 2020. Rent revenue $ 29,000 Interest expense 18,000 Market appreciation on land above cost Salaries and wages expense (selling) 31,000 114,800 Supplies (selling) 17,600 Income tax 23,100 Salaries and wages expense (administrative) Other administrative expenses 135,900 51,700 Cost of goods sold 496,000 980,000 Net sales Depreciation on plant assets (70% selling, 30% administrative) Cash dividends declared 65,000 16,000 There were 20,000 shares of common stock outstanding during the year. Instructions a. Prepare a multiple-step income statement. b. Prepare a single-step income statement. c. Which format do you prefer? Discuss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a) Prepare a multiple-step income statement
b) prepare a single-step income statement
Transcribed Image Text:E4.7 (LO 2, 3) (Multiple-Step and Single-Step Statements) The accountant of Latifa Shoe Co. has piled the following information from the company's records as a basis for an income statement for
the year ended December 31, 2020.
Rent revenue
$ 29,000
Interest expense
18,000
Market appreciation on land above cost
Salaries and wages expense (selling)
31,000
114,800
Supplies (selling)
17,600
Income tax
23,100
Salaries and wages expense (administrative)
Other administrative expenses
135,900
51,700
Cost of goods sold
496,000
980,000
Net sales
Depreciation on plant assets (70% selling, 30% administrative)
Cash dividends declared
65,000
16,000
There were 20,000 shares of common stock outstanding during the year.
Instructions
a. Prepare a multiple-step income statement.
b. Prepare a single-step income statement.
c. Which format do you prefer? Discuss.
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