The following balances were taken from the books of Schimank Corp. on December 31, 2014.

Assume the total effective tax rate on all items is 34%.

Instructions
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during theyear.

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Interest revenue Cash Sales Accounts receivable Prepaid insurance Sales retums and allowances Allowance for doubtful $120,400 Accumulated depreciation-equipment 56,000 39,200 217,000 271,600 238,000 140,000 71,400 Accumulated depreciation- building 1,932,000 Notes receivable 210,000 Selling expenses 28,000 Accounts payable 210,000 Bonds payable Administrative and general 9,800 expenses accounts Sales discounts Land Equipment Building Cost of goods sold 63,000 Accrued liabilities 140,000 Interest expense 280,000 Notes payable 196,000 Loss from earthquake damage 869,400 (extraordinary item) 135,800 44,800 84,000 140,000 Common stock Retained eamings 210,000 700,000 29,400