Chapter 5, Problem 4E

Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31, 2016, adjusted trial balance:

Additional data:

1. 1. A physical count reveals an ending inventory of $22,500 on December 31, 2016.
2. 2. Twenty-five thousand shares of common stock have been outstanding the entire year.
3. 3. The income tax rate is 30% on all items of income.

Required:

1. 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuch’s cost of goods sold.
2. 2. Prepare a 2016 multiple-step income statement.
3. 3. Prepare a 2016 single-step income statement.