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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 $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 (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 2 years ago
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