Solution-Prepare a multiple-step income statement

Prepare a multiple-step income statement

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Reference no: EM132085438

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.

Reference no: EM132085438

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Prepare a multiple-step income statement

Reference no: EM132085438

Reference no: EM132085438

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