The following balances were taken from the books of Bonita Corp. on December 31, 2020.Interest revenue$87,400Accumulated depreciation—equipment$41,400Cash52,400Accumulated depreciation—buildings29,400Sales revenue1,381,400Notes receivable156,400Accounts receivable151,400Selling expenses195,400Prepaid insurance21,400Accounts payable171,400Sales returns and allowances151,400Bonds payable101,400Allowance for doubtful accounts8,400Administrative and general expenses98,400Sales discounts46,400Accrued liabilities33,400Land101,400Interest expense61,400Equipment201,400Notes payable101,400Buildings141,400Loss from earthquake damage151,400Cost of goods sold622,400Common stock501,400 Retained earnings22,400Assume the total effective tax rate on all items is 20%.Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Question
Asked Dec 6, 2019
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The following balances were taken from the books of Bonita Corp. on December 31, 2020.

Interest revenue

$87,400

Accumulated depreciation—equipment

$41,400
Cash

52,400

Accumulated depreciation—buildings

29,400
Sales revenue

1,381,400

Notes receivable

156,400
Accounts receivable

151,400

Selling expenses

195,400
Prepaid insurance

21,400

Accounts payable

171,400
Sales returns and allowances

151,400

Bonds payable

101,400
Allowance for doubtful accounts

8,400

Administrative and general expenses

98,400
Sales discounts

46,400

Accrued liabilities

33,400
Land

101,400

Interest expense

61,400
Equipment

201,400

Notes payable

101,400
Buildings

141,400

Loss from earthquake damage

151,400
Cost of goods sold

622,400

Common stock

501,400

 


Retained earnings

22,400

Assume the total effective tax rate on all items is 20%.

Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

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Expert Answer

Step 1

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and sepa...

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