Chapter 5, Problem 5.6E

Condensed Statement of Net Income. Using the information provided in E5-5 prepare a condensed, multiple-step statement of net income for Boley Boxes. Inc that includes all supporting schedules.

E5-5 Multiple-step Statement of Net Income. The current year’s statement of net income for Boley Boxes Inc. in a single-step format follows.

Boley Boxes. Inc Income Statement For the Year Ended December 31
Revenues and Gains
Sales	$875,650
interest income	325
Dividend Income	780
Gain on Sale of Investment Securities	4,300
Unrealized Gain on Tradino Securities	6,000
Total Revenues and Gains		$887,055
Expenses and Losses
Cost of Goods Sold	$45,000
Selling Expenses	32,560
Sales Salaries Expense	14,567
Advertising Expense	16,400
Depreciation Expense— General	2500
Amortzation Exponso—General	1680
Office Salaries Expense	19,400
Office Supplies Expense	23,000
Loss on Asset impairment	3,450
Legal Fees—General	2,150
Accounting Fees—General	4300
Interset Expense	5,000
income Tax Expense at 40% • 40% × ($887,055 − $170,007) = 40% × $717,048 = $286,819	286,819
Total Expenses and Losses		(456,826)
Income from Continuing Operations		$430,229
Gain on Discontnued Operations—Net of tax		_2,700
Net Income		$432,929

Prepare Boleys income statement using a multiple-step format.