Please remember common shares outstanding total 40,550 (000 omitted) Two accountants for the firm of Elwes and Wright are arguingabout the merits of presenting an income statement in a multiple-step versus a single-step format. Thediscussion involves the following 2011 information related to P. Bride Company ($000 omitted).Administrative expenseOfficers' salariesDepreciation of office furniture and equipmentCost of goods soldRent revenue$ 4,9003,96060,57017,230blelencoSelling expense"Delivery expenseSales commissions2,690-- 7,9806,48096,500sei1o berl 9,070.Depreciation of sales equipmentSales revenuenollamuaes 1ellob-income taxdelgindbInterest expense1,860Instructions(a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares out-standing for 2014 total 40,550 (000 omitted).(b) Prepare an income statement for the year 20 using the single-step form.(c) Which one do you prefer? Discuss.

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2011 information related to P. Bride Company ($000 omitted). Administrative expense $ 4,900 3,960 60,570 17,230 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue 2,690 - 7,980 6,480 96,500 9,070. 1,860 lashotad Income tax 10 ber Interest expense Instructions (a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares out- standing for 2014 total 40,550 (000 omitted). (b) Prepare an income statement for the year 20 using the single-step form. (c) Which one do vou prefer? Discuss.

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2011 information related to P. Bride Company ($000 omitted). Administrative expense $ 4,900 3,960 60,570 17,230 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue 2,690 - 7,980 6,480 96,500 9,070. 1,860 lashotad Income tax 10 ber Interest expense Instructions (a) Prepare an income statement for the year 2014 using the multiple-step form. Common shares out- standing for 2014 total 40,550 (000 omitted). (b) Prepare an income statement for the year 20 using the single-step form. (c) Which one do vou prefer? Discuss.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.1DC

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