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Preparing of single step and multi step income statements given the revenue and expenses account balances and tax rate.
The following information is available for the Koufax Company for the year ending Dec. 31, 2007:
Sales
400,000
Depreciation expense
50,000
Insurance expense
10,000
Salaries expense
60,000
Delivery expense
2,000
Cost of goods sold
180,000
Interest expense
12,000
Rental income
4,000
Income tax rate
30%
Beginning Retained Earnings
Dividends
25,000
Required:
Prepare two income statements and the Retained Earnings Statement. Use the single-step format and multiple-step income formats.
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