### Preparation of single step and multi step income statement

Assignment Help Accounting Basics
##### Reference no: EM1319596

The accountant of Whitney Houston Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2007.

 Rental revenue \$29,000 Interest on notes payable 18,000 Market appreciation on land above cost 31,000 Wages and salaries-sales 114,800 Materials and supplies-sales 17,600 Income tax 37,400 Wages and salaries-administrative 135,900 Other administrative expenses 51,700 Cost of goods sold 496,000 Net sales 980,000 Depreciation on plant assets (70% selling, 30% administrative) 65,000 Cash dividends declared 16,000

There were 20,000 shares of common stock outstanding during the year.

Instructions:

a) Prepare a multiple-step income statement.
b) Prepare a single-step income statement.
c) What format do you prefer? Discuss.

#### Questions Cloud

 Objective questions based on regression : Objective questions based on regression. Distributed scheduling algorithms : The receiver initiated the distributed scheduling algorithms assumed task pre-emption at sender site. Devise an approach, that is receiver-initiated however non pre-emptive. Percent of the observations-probability : The mean of a normal probability distribution is 60; the standard deviation is 5. Determining the standard error of students : Determine the standard error of students that favoured the move. Preparation of single step and multi step income statement : The accountant of Whitney Houston Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2007- Prepare a multiple-step income statement. Prepare a single-step in.. Information systems management : Describe at least three issues/problems with the Information Systems Management (ISM) in a named organization and explain at least three measures to address those issues. Explain the different measures that are effective? Why or why not? Difference in number of circuit cards bought by month : At.05 level of significance can director conclude that there is difference in the number of circuit cards bought by month? Preparation of income statement : Prepare an income statement for the year 2007 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 80,000 sha.. Selecting a crew member at random : If we select a crew member at random, what is the probability the crew member earns:

### Write a Review

#### How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

#### Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

#### Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

#### Theory of interest - term structure of interest rates

Term Structure of Interest Rates

#### Write a report on internal controls

Write a report on Internal Controls

#### Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

#### Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

#### Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

#### Liquidity and profitability

Distinguish between liquidity and profitability.

#### What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

#### Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

#### Capm and venture capital

CAPM and Venture Capital