(Multiple-Step and Extraordinary Items) The following balances were taken from the books of Maria Conchita Alonzo Corp. on December 31, 2014.
| Interest revenue |
$86,000 |
Accumulated depreciation-equipment |
$40,000 |
| Cash |
51,000 |
Accumulated depreciation-buildings |
28,000 |
| Sales revenue |
1,380,000 |
Notes receivable |
155,000 |
| Accounts receivable |
150,000 |
Selling expenses |
194,000 |
| Prepaid insurance |
20,000 |
Accounts payable |
170,000 |
| Sales returns and allowances |
150,000 |
Bonds payable |
100,000 |
| Allowance for doubtful accounts |
7,000 |
Administrative and general expenses |
97,000 |
| Sales discounts |
45,000 |
Accrued liabilities |
32,000 |
| Land |
100,000 |
Interest expense |
60,000 |
| Equipment |
200,000 |
Notes payable |
100,000 |
| Buildings |
140,000 |
Loss from earthquake damage |
|
| Cost of goods sold |
621,000 |
(extraordinary item) |
150,000 |
|
|
Common stock |
500,000 |
|
|
Retained earnings |
21,000 |
Assume the total effective tax rate on all items is 34%.
Instructions
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.