Reference no: EM132717723
Income statement information for Monty Tire Repair Corporation for the year 2020 follows:
General and administrative expenses:
Freight in $13,000
Salaries and wages expense $37,700
Purchase discounts 9,000
Depreciation expense-building 26,700
Dividend revenue 18,000
Office supplies expense 9,600
Inventory (beginning) 120,000
Inventory (ending) 134,000
Sales returns and allowances 15,000
Loss from flood damage 48,000
Service expenses:
Gain on the disposal of equipment 5,100
Salaries and wages 68,000
Purchases 600,000
Depreciation expense-garage equipment 18,400
Sales revenue 910,000
Garage supplies expense 9,200
Interest expense 9,200
The effective tax rate on all income is 30%, and Monty follows ASPE.
Problem 1: make a multiple-step income statement for 2020, showing expenses by function
Problem 2: make a single-step income statement for 2020, showing expenses by nature.