Question

Currently studying for an exam. I need this organized, please. Will definitely upvote. Thank you for your time and help. It seems like it is a lot of work but it is easier than it looks.

Chapter 04 Group work - STU Problem 1 Page 1 The following 2020 information related to P. Bride Company. $ $ 4,900 3,960 60,570 17,230 $ Administrative expense Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense 2,690 $ $ 7,980 6,480 96,500 9,070 1,860 $ 1,8

Answer 1

Multi-step income Statement:

P.BRIDE COMPANY
Income Statement
For the Year Ended December 31,2020
Sales revenue:
Sales revenue			$96,500
Cost of goods sold			($60,570)
Gross profit			$35,930
Operating expenses:
Selling expenses:
Sales commissions	$7,980
Depreciation of sales equipment	$6,480
Delivery expense	$2,690	$17,150
Administrative expense:
Officers' salaries	$4,900
Depreciation of office furniture and equipment	$3,960	$8,860	($26,010)
Income from operations			$9,920
Other revenues and Gains:
Rent revenue			$17,230
			$27,150
Other expenses and losses
Interest expense			($1,860)
Income before income tax			$25,290
Income tax			($9,070)
Net income			$16,220
Earnings per share [16,220 ÷ 40,550 shares]			$0.40

Single-step income Statement:

P.BRIDE COMPANY
Income Statement
For the Year Ended December 31,2020
Revenues:
Net sales	$96,500
Rental revenue	$17,230
Total revenues		$113,730
Expenses:
Cost of goods sold	$60,570
Selling expenses	$17,150
Administrative expense	$8,860
Interest expense	$1,860
Total expenses		($88,440)
Income before income tax		$25,290
Income tax		($9,070)
Net income		$16,220