Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 5, Problem 5.1P
Multiple-Step and Single-Step income Statement, from its current-year
Bluebird Products, Inc. Trial Balance (Partial) For the Year Ended December 31 |
||
Account | Debit | Credit |
Common Stock (no par)—Beginning Balance | 51,456,000 | |
Retained Earnings—Beginning Balance | 3,200,950 | |
Accumulated Other Comprehensive Income Beginning Balance | 95,675 | |
Dividends | $ 76,500 | |
Sales | 2,200,000 | |
Interest Income | 34,500 | |
Dividend Income | 12,300 | |
Gain on Disposal of Plant Assets | 100,500 | |
Unrealized Gain on Trading Securities | 86,000 | |
Unrealized Gain on Available-for-Sale Bonds | 45,600 | |
Cost of Goods Sold | 750,000 | |
Selling Expenses | 20,000 | |
Office Supplies Expense | 123,500 | |
Sales Salaries Expense | 55.000 | |
Advertising Expense | 68,900 | |
Office Salaries Expense | 78,500 | |
Accounting and Legal Fees—General | 10,425 | |
Systems Consulting Fees—General | 44,550 | |
Depreciation Expense—General | 68,000 | |
Amortization Expense—General | 34,500 | |
Interest Expense | 23,750 | |
Loss on Discontinued Operations—Before Tax | 90,000 | |
Loss on Asset Impairment | 12,350 |
Required
- a. Prepare a single-step income statement (or the year ended December 31 The tax rate is 40%.
- b. Prepare a multiple-step income statement for the year ended December 31.
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Chapter 5 Solutions
Intermediate Accounting
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