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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance:

Chapter 5, Problem 7E, Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December

Additional data:

  1. 1. Seven thousand shares of common stock have been outstanding the entire year.
  2. 2. The income tax rate is 30% on all items of income.

Required:

  1. 1. Prepare a 2019 multiple-step income statement.
  2. 2. Prepare a 2019 single-step income statement.
  3. 3. Prepare a 2019 statement of comprehensive income.

1.

To determine

Prepare a multi-step income statement of Company O for the year ended December 31, 2019.

Explanation

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Prepare a multi-step income statement of Company O for the year ended December 31, 2019 as follows:

Company O
Income Statement
For Year Ended December 31, 2019
ParticularsAmount ($)Amount ($)
Sales        160,000
Less: Cost of goods sold         (95,000)
Gross profit            65,000
Less: Operating expenses:  
     Selling expenses           14,000 
     General and administrative expenses          17,000 
Total operating expenses        31,000
Operating income           34,000
Other items:  
>&#...

2.

To determine

Prepare a single-step income statement of Company O for the year ended December 31, 2019.

3.

To determine

Prepare a statement of comprehensive income of Company O for the year ended December 31, 2019.

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