Data taken from the accounting records of Sherri’s Designs onDecember 31 are shown.Operating expenses...Data...

50.1K

Verified Solution

Question

Accounting

Data taken from the accounting records of Sherri’s Designs onDecember 31 are shown.
Operating expenses $1,000
Sales revenue 5,000
Inventory, Jan. 1, 2019 1,600
Purchases 1,200
Interest revenue 250
Loss on disposal of a discontinued component of the business(pre-tax) 400
Inventory, Dec. 31, 2019 750
Income tax expense 660
Sherri’s Designs has 2,000 shares of common stock outstandingand net income per share for 2019 was $0.63. The income tax rate is30%.
Required:
a. Prepare a single-step income statement.
b. Prepare a multiple-step income statement.

Answer & Explanation Solved by verified expert

4.1 Ratings (604 Votes)

Requirement a Income statement Single step Revenues Saleas revenue 5000 Interest revenue 250 Total revenues 5250 Expenses Cost of goods sold 2050 Operating expenses 1000 Income See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingData taken from the accounting records of Sherri’s Designs onDecember 31 are shown.Operating expenses...Data taken from the accounting records of Sherri’s Designs onDecember 31 are shown.Operating expenses$1,000Sales revenue5,000Inventory, Jan. 1, 20191,600Purchases1,200Interest revenue250Loss on disposal of a discontinued component of the business(pre-tax)400Inventory, Dec. 31, 2019750Income tax expense660Sherri’s Designs has 2,000 shares of common stock outstandingand net income per share for 2019 was $0.63. The income tax rate is30%.Required:a.Prepare a single-step income statement.b.Prepare a multiple-step income statement.

Operating expenses	$1,000
Sales revenue	5,000
Inventory, Jan. 1, 2019	1,600
Purchases	1,200
Interest revenue	250
Loss on disposal of a discontinued component of the business(pre-tax)	400
Inventory, Dec. 31, 2019	750
Income tax expense	660

a.	Prepare a single-step income statement.
b.	Prepare a multiple-step income statement.