E5-10 Prepare multiple-step and single-step income statement In its income statement for the year ended December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
E5-10 Prepare multiple-step and single-step income statement In its income statement for the year ended December 31,2015, Lemere Company reported the following condensed data. Operating Expenses Cost of goods sold $725,000 1,289,000 Interest revenue $28,000 Interest expense 70,000 Loss on disposal of plant assets Net sales 17,000 2,200,000 Instructions: (a) Prepare a multiple-step income statement. (b) Prepare a single-step income statement. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Multiple-step income statement LEMERE COMPANY Income Statement For the Year ended December 31, 2015 Net sales Cost of goods sold Value Value Gross profit Operating expenses Income from operations Other revenues and gains ? Value ? Interest revenue Value Other expenses and losses Interest expense Value Loss on disposal of plant assets Value ? ? ? Net income (b) Single-step income statement Revenues Net Sales Interest revenue Total revenues Expenses LEMERE COMPANY Income Statement For the Year ended December 31, 2015 Value Value ? Cost of goods sold Value Operating expenses Value Interest expense Value Loss on disposal of plant assets Value Total expenses ? Net income ? After you have completed the requirements of E5-10, consider the additional question. Answers are on the other tab in this file. 1. Suppose cost of goods sold changed to $1,320,000. What impact does this have on net income, as determined using both the multiple-step and single-step income statements? E5-10 Prepare multiple-step and single-step income statement In its income statement for the year ended December 31,2015, Lemere Company reported the following condensed data. Operating Expenses Cost of goods sold $725,000 1,289,000 Interest revenue $28,000 Interest expense 70,000 Loss on disposal of plant assets Net sales 17,000 2,200,000 Instructions: (a) Prepare a multiple-step income statement. (b) Prepare a single-step income statement. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Multiple-step income statement LEMERE COMPANY Income Statement For the Year ended December 31, 2015 Net sales Cost of goods sold Value Value Gross profit Operating expenses Income from operations Other revenues and gains ? Value ? Interest revenue Value Other expenses and losses Interest expense Value Loss on disposal of plant assets Value ? ? ? Net income (b) Single-step income statement Revenues Net Sales Interest revenue Total revenues Expenses LEMERE COMPANY Income Statement For the Year ended December 31, 2015 Value Value ? Cost of goods sold Value Operating expenses Value Interest expense Value Loss on disposal of plant assets Value Total expenses ? Net income ? After you have completed the requirements of E5-10, consider the additional question. Answers are on the other tab in this file. 1. Suppose cost of goods sold changed to $1,320,000. What impact does this have on net income, as determined using both the multiple-step and single-step income statements?
Expert Answer:
Answer rating: 100% (QA)
a Multiplestep income statement LEMERE COMPANY Income Statement For the Year ended December 31 2015 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
Make a presentation and asking questions about this article. https://www.bloomberg.com/news/articles/2022-08-17/tiktok-fights-election-misinformation-ahead-of-us-midterms TikTok Reinforces its Ban of...
-
Patterson and Landry, (P and L) CPA firm is contemplating accepting an audit of a new client, UMO Catering. UMO Catering uses two accountants that rotate between the accounting department and the...
-
The following data represent the prices in dollars of general admission tickets for the last 18 concerts at one venue. Use the given data to determine the stems for this stem-and-leaf plot. $50 $61...
-
During the Great Recession, many consumers who had previously shopped at traditional supermarkets shifted to doing basic shopping at dollar stores and discount department stores. Furthermore, some of...
-
The following data pertain to the operating budget of Matt Manufacturing. Capacity per period is sales of $800 000. For each of the following, perform a break-even analysis showing (a) An algebraic...
-
A chemical engineer studied the effect of the amount of surfactant and time on clathrate formation. Clathrates are used as cool storage media. Table B. 8 summarizes the experimental results. a. Fit a...
-
Prepare entries for (a), (b), and (c) listed below using two methods. First, prepare the entries without making a reversing entry. Second, prepare the entries with the use of a reversing entry. Use...
-
Write the equation of the line tangent to f(x)= 1 when x = 1.
-
Benjamin used regression analysis to fit quadratic relations to monthly revenue and cost data with the following results: R = 0.007 Q2 + 32 Q TC = 0.004 Q2 + 2.2 Q + 8 (a) Plot R and TC. Estimate...
-
Discuss the aims of sentencing - punishment, rehabilitation, reparation, deterrent. (individual and general)
-
The percentage of heights less than 147 centimeters
-
A \(5,0-\mathrm{kg}\) hollow cylinder of radius \(0.25 \mathrm{~m}\) rotates freely about an axle that runs through its center and along its long axis. A cord is wrapped around the cylinder and is...
-
Bridge hands. In the game of bridge, four players are dealt hands of 13 cards each. An important statistic is the distribution of the number of cards in each suit in a hand. Which is the most likely,...
-
Put your index fingers about \(1 \mathrm{~m}\) apart and rest a meterstick or similar object on top of them. Then, while holding the meterstick parallel to the floor, slowly draw your fingers toward...
-
Think of an organised activity in which you participate at college or at home. To what extent does this activity involve planning, decision making and control? Who carries out the planning? Who makes...
-
Canton Corporation anticipates that it will earn firm FCFs of $4 million per year for each of the next five years. Beginning in year 6, the firm will earn FCF of $5 million per year for the...
-
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
-
Assets are the cornerstone of financial reporting; often it is unclear whether an expenditure is an asset or an expense. For each of the transactions described below, consider if the expenditure...
-
Linda Monkland established Monkland Ltd. in mid-2013 as the sole shareholder. The accounts on June 30, 2014, the company's year end, just prior to preparing the required adjusting entries, were as...
-
Khamsah Mining Ltd. is a small private company that purchased a tract of land for $720,000. After incurring exploration costs of $83,000, the company estimated that the tract will yield 120,000...
-
The preferred stock of the Luxemburg Mining Corporation pays a $3.25 dividend. What is the value of the stock if your required rate of return is 8 percent?
-
What is the value of Brunei Petroleum Companys preferred stock when the dividend rate is 18 percent on a $100 par value? The appropriate discount rate for a stock of this risk level is 14 percent.
-
What is the value of Queens Park PLCs preferred stock when the dividend rate is 10 percent on a $100 par value? The appropriate discount rate for a stock of this risk level is 16 percent.
How To Write Winning Proposals For Your Company Or Client 2nd Edition - ISBN: 0471529486 - Free Book
Study smarter with the SolutionInn App