Question

Question 3 of 5 < > -/10 View Policies Current Attempt in Progress Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Whispering Company (S000 omitted). $5,076 4.136 60.746 17.406 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 2,866 8.156 6,656 96,676 9.246 2,036 Common shares outstanding for 2020 total 37,910 (000 omitted). (a) Prepare an income statement for the year 2020 using the multiple step form. (Round earnings per share to 2 decimal places 1.48.) WHISPERING COMPANY

Answer 1

WHISPERING COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue			96,676
Cost of goods sold			60,746
Gross profit			35,930
Operating expenses
Selling expenses
Delivery expense	2,866
Sales commissions	8,156
Depreciation of sales equipment	6,656	17,678
Administrative expenses
Officers’ salaries	5,076
Depreciation of office furniture and equipment	4,136	9,212	26,890
Income From Operations			9,040
Other Revenues and Gains
Rent revenue			17,406
			26,446
Other Expenses and Losses
Interest expense			2,036
Income before Income Tax			24,410
Income tax			9,246
Net Income			15,164
Earning Per Share			0.40
WHISPERING COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Revenues
Sales revenue			96,676
Rent revenue			17,406
Total Revenues			114,082
Expenses
Cost of goods sold			60,746
Selling expenses			17,678
Administrative expenses			9,212
Interest expense			2,036
Total Expenses			89,672
Income before Income Tax			24,410
Income tax			9,246
Net Income			15,164
Earning Per Share			0.40