Purchase Solution

Multiple-step and Single-step Income Statement

Not what you're looking for?

Ask Custom Question

(Multiple-step and Single-step) Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting and income statement in a multiple-step versus a single-step format. The discussion involves the following 2007 information related to P. Bride Company ($000 omitted).

Administrative expense
Officer's salaries $4,900
Depreciation of office furniture and equipment $3.960
Cost of goods sold $60,570
Rental revenue $17,230

Selling expense
Transportation-out $2,690
Sales commissions $7,980
Depreciation of sales equipment $6,480
Sales $96,500
Income tax $9,070
Interest expense $1,860

Instructions
a.Prepare an income statement for the year 2007 using the multiple-step form. Common shares outstanding for 2007 total 40,550 (000 omitted)
b.Prepare an income statement for the year 2007 using the single-step form
c.Which one do you prefer? Discuss.

Purchase this Solution
Solution Summary

The solution explains how to prepare a single-step and a multiple-step income statement

Solution Preview

Please see the attached file.

(a) Multi Step - Here we have subtotals and distinguish between operating and non operating items
Non operating are shown as other income and expense
P. Bride Company
Income Statement
For the Year Ended December 31, 2007
($' 000)
Sales $96,500
Cost of goods sold 60,570
Gross profit 35,930
Operating Expenses
Selling expenses
...

Purchase this Solution
Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

View More Free Quizzes
Related BrainMass Solutions

  • This post discusses the Weatherspoon Shoe Co. exercise.

    The multiple-step form or the single-step form. Discuss. I prefer the single-step income statement. The single-step income statement has a few advantages that the multiple-step statement doesn't, which oftentimes makes it a preferable method.

  • Multiple-Step vs Single-Step Income Statements

    370103 Multiple-Step vs Single-Step Income Statements What are some advantages and disadvantages that a multiple-step income statement has verses a single-step statement? How might managers use a multi-step income statement in decision making?

  • Emphasis of the Single Step Income Statement

    400726 Emphasis of the Single Step Income Statement The single-step income statement emphasizes A. extraordinary items and accounting changes more than these are emphasized in the multiple-step income statement. B.

  • Strength-Weakness of mulit-step/single step Income Statement

    345179 Financial accounting: Strengths and weaknesses of mulit-step or single step income statement Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single a single-step

  • Income Statement

    114349 Financial Statements: Income Statement Problem 1 The income statement in which the total of all expenses is deducted from the total of all revenues is termed: A. Multiple-step form B. Single-step form C. Account form D.

  • Preparing an income statement - Coyote, Inc.

    There are three benefits to using a multiple-step income statement instead of a single-step income statement: 1.

  • Preparing an Income Statement: Briede Company Example

    Solution is provided in a separate excel file attached as follows: 1) Multiple income statement 2) Single step Income statement Notes on comparative features and merits of two statements and reason for widely using multiple income statement.

  • This prepares a single & multiple step income statement.

    Instructions (a) Prepare a multiple-step income statement. (b) Prepare a single-step income statement. -- Full solution in a clean format is in the attached Word document. (a) Prepare a multiple-step income statement.

  • Preparing a Multi-Step and Single Step Income Statement.

    (a) Prepare a multiple-step income statement (b) Prepare a single-step income statement (c) Which format do you prefer?

View More Related Solutions