(Multiple-step and Single-step) 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 2004 information related to P. Bride Company ($000 omitted).
(a) Prepare an income statement for the year 2004 using the multiple-step form. Common shares outstanding for 2004 total 40,550 (000 omitted).
(b) Prepare an income statement for the year 2004 using the single-step form.
(c) Which one do you prefer? Discuss.Administrative expense
Officers' salaries $ 4,900
Depreciation of office furniture and equipment 3,960
Cost of goods sold 60,570
Rental revenue 17,230
Selling expense
Transportation-out 2,690
Sales commissions 7,980
Depreciation of sales equipment 6,480
Sales 96,500
Income tax 9,070
Interest expense 1,860