Prepare multiple-step income statement showing expenses

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Question - The following balances were taken from the books of Monty Limited on December 31, 2020:

Interest income

$84,000

Accumulated depreciation-equipment

$50,000

Cash

52,000

Accumulated depreciation-buildings

26,000

Sales revenue

1,390,000

Notes receivable

145,000

Accounts receivable

140,000

Selling expenses

193,000

Prepaid insurance

25,000

Accounts payable

167,000

Sales returns and allowances

136,000

Bonds payable

101,000

Allowance for doubtful accounts

7,000

Administrative expenses

97,000

Sales discounts

42,000

Unearned revenue

23,000

Land

100,000

Interest expense

41,000

Equipment

200,000

Notes payable

100,000

Building

130,000

Loss from storm damage

142,000

Cost of goods sold

612,000

Depreciation expense

41,000

Assume the total effective tax rate on all items is 20%.

Prepare multiple-step income statement showing expenses by function. Assume that 100,000 common shares were outstanding during the year. Include calculation of EPS. Monty Limited follows ASPE but decides to disclose EPS on its income statement.

Reference no: EM133139357

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