Question

Included in the December 31, 2010 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 2010 multiple-step income statement.
2. Prepare a 2010 single-step income statement.
3. Discuss how Gold Company’s income statement in Requirement 1 might be different if it used IFRS.



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  • CreatedDecember 09, 2013
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