Preparing of single step and multi step income statements given the revenue and expenses account balances and tax rate.
The following information is available for the Koufax Company for the year ending Dec. 31, 2007:
|
Sales
|
400,000
|
|
Depreciation expense
|
50,000
|
|
Insurance expense
|
10,000
|
|
Salaries expense
|
60,000
|
|
Delivery expense
|
2,000
|
|
Cost of goods sold
|
180,000
|
|
Interest expense
|
12,000
|
|
Rental income
|
4,000
|
|
Income tax rate
|
30%
|
|
Beginning Retained Earnings
|
50,000
|
|
Dividends
|
25,000
|
Required:
Prepare two income statements and the Retained Earnings Statement. Use the single-step format and multiple-step income formats.