Chapter 4, Problem 4.2E

Income statement format; single step and multiple step

• LO4–1, LO4–5

Account Title	Debits	Credits
Sales revenue		1,300,000
Interest revenue		30,000
Gain on sale of investments		50,000
Cost of goods sold		720,000
Selling expenses		160,000
General and administrative expenses		75,000
Interest expense		40,000
Income tax expense		130,000

100,000 shares of common stock were outstanding throughout 2018.

Required:

1. Prepare a single-step income statement for 2018, including EPS disclosures.

2. Prepare a multiple-step income statement for 2018, including EPS disclosures.