The following balances were taken from the books of Alonzo Corp. on December 31, 2020.

Assume the total effective tax rate on all items is 20%.

Instructions

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

Transcribed Image Text:

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