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    Preparing a Multi-Step and Single Step Income Statement.

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    The accountant of Whitney Houston Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31,2007.
    Rental Revenue $29,000
    Interest on notes payable $18,000
    Market appreciation on land above cost $31,000
    Wages and salaries - sales $114,800
    Materials and supplies - sales $17,600
    Income tax $37,400
    Wages and Salaries - administrative $135,900
    other administrative expenses $51,700
    cost of goods sold $496,000
    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.
    (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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    Solution Summary

    The problem deals with how to prepare a single-step and a multi-step income statement in Excel.

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