The accountant of Weatherspoon Shoe Co. has compiled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2015.

Instructions

(a) Prepare a comprehensive income statement using the combined statement approach.

(b) Prepare a comprehensive income statement using the two statement approach.

(c) Which format do you prefer? Discuss.

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Rent revenue Interest expense Unrealized gain on non-trading equity securities, net of tax Selling expenses Income tax Administrative expenses Cost of goods sold Net sales Cash dividends declared Loss on sale of plant assets 29,000 18,000 31,000 140,000 30,600 181,000 516,000 980,000 16,000 15,000