(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.