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EXERCISE 4-6 (3040 minutes) (a)Multiple-Step Form WEATHERSPOON SHOE CO. Income Statement For the line of business of study Ended celestial latitude 31, 2010 last-place gross revenue$980,000 Cost of goods sold 516,000 Gross attain464,000 Operating Expenses Selling expenditures invent and salaries$114,800 Depr. exp. (70% X $65,000)45,500 Materials and supplies 17,600$177,900 Administrative expenses Wages and salaries135,900 other admin. expenses 51,700 Depr. exp. (30% X $65,000) 19,500 207,100 385,000 Income from operations79,000 Other Revenues and Gains Rental receipts enhancement 29,000 108,000 Other Expenses and Losses worry expense 18,000 Income before income levy90,000 Income tax 30,600 Net income$ 59,400 Earnings per character ($59,400 Ã · 20,000) $2.97 (b)Single-Step Form WEATHERSPOON SHOE CO.

Income Statement For the Year Ended celestial latitude 31, 2010 Revenues Net sales$ 980,000 Rental tax revenue 29,000 fall revenues 1,009,000 Expenses Cost of goods sold$516,000 Selling expenses177,900 Administrative expenses207,100 Interest expense 18,000 Total expenses 919,000 Income before income tax90,000 Income tax 30,600 Net income$ 59,400 Earnings per percent ($59,400 ÷ 20, 000)$2.97 Note: An alternative income sta! tement arrange for the single-step form is to draw income tax as part of expenses, and not as a separate item. (c)Single-step: 1.Simplicity and conciseness. 2.Probably pause understood by users. 3.Emphasis on total be and expenses and net income. 4.Does not imply priority of cardinal revenue or expense over another. Multiple-step: 1.Provides more schooling through...If you postulate to get a full essay, order it on our website: OrderCustomPaper.com

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