The following accounts are taken from the accounting records of Dory Company at December 31, 2020 after adjustments:Sales revenue$249,000Sales salaries expense14,000Administrative salaries expense15,000Depreciation expense: equipment8,000Purchases160,000Purchases returns2,000Freight-in10,000Inventory, 1/1/2080,000Retained earnings, 1/1/2060,000 In addition, the following information is available:•The inventory on December 31, 2020, was $75,000.•Ten thousand shares of common stock were outstanding during the entire year. Dory paid dividends of $1.00 per share.•At the end of October, Dory sold its unprofitable restaurant component. From January through October, the component had incurred an operating loss (pretax) of $14,000. The sale was made at a loss (pretax) of $8,000.•The applicable tax rate is 30%. Required: Prepare a 2020 multiple-step income statement for the Dory Company.

Name: The following accounts are taken from the accounting records of Dory C
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Description: The following accounts are taken from the accounting records of Dory Company at December 31, 2020 after adjustments:Sales revenue$249,000Sales salaries expense14,000Administrative salaries expense15,000Depreciation expense: equipment8,000Purchases160

An organization can prepare their Income statement either in a single step format or a multi-step…

Answered: The following accounts are taken from…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

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Problem 17E: Income Statement and Retained Earnings Huff Company presents the following items derived from its...

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The following accounts are taken from the accounting records of Dory Company at December 31, 2020 after adjustments:

Sales revenue	$249,000
Sales salaries expense	14,000
Administrative salaries expense	15,000
Depreciation expense: equipment	8,000
Purchases	160,000
Purchases returns	2,000
Freight-in	10,000
Inventory, 1/1/20	80,000
Retained earnings, 1/1/20	60,000

In addition, the following information is available:

•	The inventory on December 31, 2020, was $75,000.
•	Ten thousand shares of common stock were outstanding during the entire year. Dory paid dividends of $1.00 per share.
•	At the end of October, Dory sold its unprofitable restaurant component. From January through October, the component had incurred an operating loss (pretax) of $14,000. The sale was made at a loss (pretax) of $8,000.
•	The applicable tax rate is 30%.

Required:

Prepare a 2020 multiple-step income statement for the Dory Company.

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