Multiple Step and Single Step Income Statements Included in the December 31, 2007 adjusted trial balance of the Gold Company are the following accounts:
|
Cost of goods sold |
$101,000 |
|
Sales |
200,000 |
|
General and administrative expenses |
20,000 |
|
Loss from strike (pretax) |
9,000 |
|
Selling expenses |
$28,000 |
|
Sales returns and allowances |
5,000 |
|
Interest revenue |
4,000 |
|
Extraordinary loss (pretax) |
17,000 |
Additional data:
1. Seven thousand shares of common stock have been outstanding the entire year.
2. The income tax rate is 30% on all items of income.
Required
1. Prepare a 2007 multiple step income statement.
2. Prepare a 2007 single step income statement.