In its income statement for the year ended December 31, 2008, Bach Resort & Spa reported the following condensed data.
|
Administrative expenses
|
$ 435,000
|
Selling expenses
|
$ 490,000
|
|
Cost of goods sold
|
1,289,000
|
Loss on sale of equipment
|
10,000
|
|
Interest expense
|
70,000
|
Net sales
|
2,342,000
|
|
Interest revenue
|
28,000
|
|
|
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.