In its income statement for the year ended December 31, 2008, Bach Resort & Spa reported the following condensed data.
|
Administrative expenses |
$ 435,000 |
Selling expenses |
$ 490,000 |
|
Cost of goods sold |
1,289,000 |
Loss on sale of equipment |
10,000 |
|
Interest expense |
70,000 |
Net sales |
2,342,000 |
|
Interest revenue |
28,000 |
|
|
Instructions
(a) Prepare a multiple step income statement.
(b) Prepare a single step income statement.