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

Preparing a Single-Step and a Multiple-Step Income Statement

The following selected items are taken from the adjusted trial balance of Amick Corp. at December 31, 2020.

Sales revenue $760,000
Cost of goods sold 460,000
Dividends received on investment in stocks 5,200
Interest expense 3,360
Loss on sale of investments 38,400
Promotion expense 12,000
Shipping expense 20,000
Depreciation (50% selling, 50% general and administrative) 16,000
Salaries (general and administrative) 64,000
Other general and administrative expenses 18,400
Salaries (selling) 68,240
Interest revenue 2,000
Income tax rate 25%
Common stock 20,000 shares

Required

a. Prepare a single-step income statement (including earnings per share). Include income taxes in its own section.

b. Prepare a multiple-step income statement (including earnings per share).

  • Enter revenues and gains and expenses and losses in the order of the largest dollar amount to the smallest dollar amount.
  • Do not use negative signs with any of your answers.
  • Round the per share amount to two decimal places.

Solutions

Expert Solution

ekkarill92 answered 3 years ago
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