Preparing a Single-Step and a Multiple-Step Income Statement The following selected items are taken from the adjusted...

90.2K

Verified Solution

Question

Accounting

Preparing a Single-Step and a Multiple-Step IncomeStatement
The following selected items are taken from the adjusted trialbalance of Amick Corp. at December 31, 2020.
Sales revenue $380,000
Cost of goods sold 230,000
Dividends received on investment in stocks 2,600
Interest expense 1,680
Loss on sale of investments 19,200
Promotion expense 6,000
Shipping expense 10,000
Depreciation (50% selling, 50% general and administrative) 8,000
Salaries (general and administrative) 32,000
Other general and administrative expenses 9,200
Salaries (selling) 34,120
Interest revenue 1,000
Income tax rate 25%
Common stock 10,000 shares
Required
a. Prepare a single-step income statement (includingearnings per share). Include income taxes in its own section.
b. Prepare a multiple-step income statement (includingearnings per share).
Enter revenues and gains and expenses and losses in the orderof the largest dollar amount to the smallestdollar amount.
Do not use negative signs with any of your answers.
Round the per share amount to two decimal places

Answer & Explanation Solved by verified expert

4.4 Ratings (654 Votes)

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

Preparing a Single-Step and a Multiple-Step IncomeStatementThe following selected items are taken from the adjusted trialbalance of Amick Corp. at December 31, 2020.Sales revenue$380,000Cost of goods sold230,000Dividends received on investment in stocks2,600Interest expense1,680Loss on sale of investments19,200Promotion expense6,000Shipping expense10,000Depreciation (50% selling, 50% general and administrative)8,000Salaries (general and administrative)32,000Other general and administrative expenses9,200Salaries (selling)34,120Interest revenue1,000Income tax rate25%Common stock10,000 sharesRequireda. Prepare a single-step income statement (includingearnings per share). Include income taxes in its own section.b. Prepare a multiple-step income statement (includingearnings per share).Enter revenues and gains and expenses and losses in the orderof the largest dollar amount to the smallestdollar amount.Do not use negative signs with any of your answers.Round the per share amount to two decimal places

Sales revenue	$380,000
Cost of goods sold	230,000
Dividends received on investment in stocks	2,600
Interest expense	1,680
Loss on sale of investments	19,200
Promotion expense	6,000
Shipping expense	10,000
Depreciation (50% selling, 50% general and administrative)	8,000
Salaries (general and administrative)	32,000
Other general and administrative expenses	9,200
Salaries (selling)	34,120
Interest revenue	1,000
Income tax rate	25%
Common stock	10,000 shares