Prepare an income statement for the year

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Question - Multiple-step and Single-step

Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2010 information related to Webster Company ($000 omitted).

Administrative expense


Officer's salaries

$   5,570

Depreciation of office furniture and equipment

4,560

Cost of goods sold

61,240

Rental revenue

22,450

Selling expense


Transportation-out

2,690

Sales commissions

7,980

Depreciation of sales equipment

6,480

Sales

97,070

Income tax

9,070

Interest expense

1,860

(a) Prepare an income statement for the year 2010 using the multiple-step form. Common shares outstanding for 2010 total 40,550 (000 omitted).

(b) Prepare an income statement for the year 2010 using the single-step form.

Reference no: EM131790321

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