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.

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Description: 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 om

Under multi-step income statement, the gross profit, operating profit are recognized step by step.…

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Two accountants for the irm of Elwes and Wnght 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 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue $ 4,900 3,960 60,570 17,230 Seiling expense Delivery expense Sales commissions 2,690 -- 7,980 6,480 96,500 9,070 1,860 Depreciation of sales equipment Sales revenue income tax Interest expense nnחדחו iהמ

Two accountants for the irm of Elwes and Wnght 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 Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue $ 4,900 3,960 60,570 17,230 Seiling expense Delivery expense Sales commissions 2,690 -- 7,980 6,480 96,500 9,070 1,860 Depreciation of sales equipment Sales revenue income tax Interest expense nnחדחו iהמ

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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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 2017 information related to Concord Company ($000 omitted). Administrative expense     Officers' salaries $5,330     Depreciation of office furniture and equipment 4,390 Cost of goods sold 61,000 Rent revenue 17,660 Selling expense     Delivery expense 3,120     Sales commissions 8,410     Depreciation of sales equipment 6,910 Sales revenue 96,930 Income tax 9,500 Interest expense 2,290 Common shares outstanding for 2017 total 40,550 (000 omitted). Prepare an income statement for the year 2017 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.) CONCORD COMPANYIncome Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 (In thousands, except…
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 2020 information related to P. Bride Company ($000 omitted). Administrative expense Officers’ salaries $ 4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Interest expense 1,860 Instructions a.    Prepare an income statement for the year 2020 using the multiple-step form. Common shares outstanding for 2020 total 40,550 (000 omitted). b.    Prepare an income statement for the year 2020 using the single-step form. c.    Which one do you prefer? Discuss.
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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 2025 informative related to P. Bride Company ($000 omitted). Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Income expense 1,860 Prepare an income statement for the year 2025 using the multiple-step form. Common shares the outstanding for 2025 total 40,550,000 (000 omitted). (Round earnings per share to 2 decimal places, e.g. 148. Enter other revenue and gains before other expenses and losses).
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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. Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Interest expense 1,860 1) Prepare an income statment for the year 2014 using the multiple step form. Common shares standing for 2014 total 40,550(000 omitted).
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The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (a) selling,(b) administrative, or (c) other?1. Advertising expense2. Depreciation expense on store equipment3. Insurance expense on office equipment4. Interest expense on notes payable5. Rent expense on office building6. Salaries of office personnel7. Salary of sales manager8. Sales supplies used
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You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00…
You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 Note: The tax rate is 32% Required: 1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about…