The following balances were taken from the books of Alonzo Corp. on December 31, 2008.

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 the year.

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$ 40,000 28,000 155,000 Interest revenue 86,000 Accumulated depreciation-equipment Accumulated depreciation-building Cash 51,000 Sales 1,380,000 Notes receivable Accounts receivable 150,000 Selling expenses Accounts payable Bonds payable Administrative and general 194,000 Prepaid insurance 20,000 170,000 Sales returns and allowances 150,000 100,000 Allowance for doubtful accounts 7,000 expenses 97,000 Sales discounts 45,000 Accrued liabilities 32,000 Land 100,000 Interest expense 60,000 Equipment Building Cost of goods sold 200,000 140,000 Notes payable Loss from earthquake damage 100,000 621,000 (extraordinary item) 150,000 Common stock 500,000 Retained earnings 21,000