This prepares a single & multiple step income statement.
Not what you're looking for?
Need to see steps on how to do this problem:
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, 2010.
Rental revenue $ 29,000
Interest expense 18,000
Market appreciation on land above cost 31,000
Wages and salaries sales 114,800
Materials and supplies sales 17,600
Income tax 30,600
Wages and salaries 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.
Purchase this Solution
Solution Summary
The solution shows how to prepare the required single step and multiple step income statement for Weatherspoon Shoe Co.
Solution Preview
-- Full solution in a clean format is in the attached Word document.
(a) Prepare a multiple-step income statement.
Net sales
980,000
COGS 516,000
Gross profit 464,000
Operating Expenses
Selling
Wages and salaries - sales 114,800
Depreciation expense (70% selling) 45,500
Materials and supplies - sales 17,600 177,900
...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Introduction to Finance
This quiz test introductory finance topics.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)