Question - The following balances were taken from the books of the Big Track Trucking Company Limited on December 31, 2014:
|
Interest income
|
$87,000
|
Accumulated depreciation-equipment
|
$42,000
|
|
Cash
|
51,000
|
Accumulated depreciation-buildings
|
27,000
|
|
Sales revenue
|
1,380,000
|
Notes receivable
|
136,000
|
|
Accounts receivable
|
130,000
|
Selling expenses
|
195,000
|
|
Prepaid insurance
|
21,000
|
Accounts payable
|
164,000
|
|
Sales returns and allowances
|
130,000
|
Bonds payable
|
110,000
|
|
Allowance for doubtful accounts
|
7,000
|
Administrative expenses
|
96,000
|
|
Sales discounts
|
48,000
|
Accrued liabilities
|
30,000
|
|
Land
|
110,000
|
Interest expense
|
59,000
|
|
Equipment
|
220,000
|
Notes payable
|
110,000
|
|
Building
|
160,000
|
Loss-other (due to storm damage)
|
130,000
|
|
Cost of goods sold
|
621,000
|
Depreciation expense
|
59,000
|
Assume the total effective tax rate on all items is 25%.
Prepare a multiple-step income statement showing expenses by function. Assume that 100,000 common shares were outstanding during the year. Include calculation of EPS.