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 1 year ago

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