prepare a multiple step income statement 644343
(Multiple Step and Single Step) The accountant of Weatherspoon Shoe Co. has compiled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2012.
Rent revenue |
$ 29,000 |
Interest expense |
18,000 |
Market appreciation on land above cost |
31,000 |
Salaries and wages expense (sales) |
114,800 |
Supplies (sales) |
17,600 |
Income tax |
30,600 |
Salaries and wages expense (administrative) |
135,900 |
Other administrative expenses |
51,700 |
Cost of goods sold |
516,000 |
Net sales |
980,000 |
Depreciation on plant assets (70% selling, 30% administrative) |
65,000 |
Cash dividends declared |
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.