Reference no: EM131792416

Question - Prepare a multiple step income statement; 100,000 shares of common stock were outstanding during the year.

The following balances were taken from the books of parnevik corp on December 31 2010

Interest revenue 86000

cash 51,000

sales 1,280,000

accounts receivable 150,000

prepaid insurance 20,000

sales returns and allowances 150,000

allowance for doubtful accounts 7,000

sales discounts 45,000

land 100,000

equipment 200,000

building 140,000

cost of goods sold 621,000

accumulated depreciation-equipment 40,000

accumulated depreciation-building 28,000

notes receivable 155,000

selling expenses 194,000

accounts payable 170,000

bonds payable 100,000

administrative and general expenses 97,000

accrued liablilities32,000

interest expense 60,000

notes payable 100,000

loss form earthquake damage (extraordinary item 120,000

common stock 500,000

retained earnings 21,000

Assume the total effective tax rate on all items is 34%

Prepare a multiple step income statement; 100,000 shares of common stock were outstanding during the year.