Income statements can be presented using two formats: a single-step statement and a multiple-step statement. The...

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Income statements can be presented using two formats: a single-step statement and a multiple-step statement. The single-step income statement emphasizes an organization's total revenues and total expenses and uses a single calculation to determine its bottom line (net income). In contras multiple-step income statement groups various revenue and expense accounts and uses several calculations to provide the reader with important subtotals, including the company's gross profit, operating expenses, and earnings before taxes. As a knowledgeable business professional, you'll ra be able to anticipate which type of income statement you may be required to analyze. For this reason, it is essential that you are familiar with both formats. For example, Tierney Company's end-of-year income statement data is listed in the following table. However, its management team would prefer t the data organized into both a multiple-step and a single-step income statement. Account Balance Account Balance Sales salaries expense $119,990 Interest expense $44,545 Advertising expense 38,470 Cost of goods sold 882,615 Depreciation expense 26,170 Insurance expense 22,015 Interest revenue 33,605 Delivery expense 22,155 Miscellaneous selling expense 16,095 Sales 1,426,040 Office salaries expense 107,545 Income tax expense 46,480 Use the data given to construct both the single-step and multiple-step statements in proper form. In each statement, enter the account names by choosing from the selection lists, and enter the appropriate numerical data directly into the spaces provided. Use the data given to construct both the single-step and multiple-step statements in proper form. In each statement, enter the account names by choosing from the selection lists, and enter the appropriate numerical data directly into the spaces provided. Tierney Company Income Statement (Single-Step Format) For the Year Ended December 31 Revenues Sales Total revenues Expenses 882,615 Sales salaries expense Office salaries expense 38,470 Delivery expense 26,170 Insurance expense 29,580 Miscellaneous selling expense 44,545 Income tax expense Total expenses Net Income Income statements can be presented using two formats: a single-step statement and a multiple-step statement. The single-step income statement emphasizes an organization's total revenues and total expenses and uses a single calculation to determine its bottom line (net income). In contras multiple-step income statement groups various revenue and expense accounts and uses several calculations to provide the reader with important subtotals, including the company's gross profit, operating expenses, and earnings before taxes. As a knowledgeable business professional, you'll ra be able to anticipate which type of income statement you may be required to analyze. For this reason, it is essential that you are familiar with both formats. For example, Tierney Company's end-of-year income statement data is listed in the following table. However, its management team would prefer t the data organized into both a multiple-step and a single-step income statement. Account Balance Account Balance Sales salaries expense $119,990 Interest expense $44,545 Advertising expense 38,470 Cost of goods sold 882,615 Depreciation expense 26,170 Insurance expense 22,015 Interest revenue 33,605 Delivery expense 22,155 Miscellaneous selling expense 16,095 Sales 1,426,040 Office salaries expense 107,545 Income tax expense 46,480 Use the data given to construct both the single-step and multiple-step statements in proper form. In each statement, enter the account names by choosing from the selection lists, and enter the appropriate numerical data directly into the spaces provided. Use the data given to construct both the single-step and multiple-step statements in proper form. In each statement, enter the account names by choosing from the selection lists, and enter the appropriate numerical data directly into the spaces provided. Tierney Company Income Statement (Single-Step Format) For the Year Ended December 31 Revenues Sales Total revenues Expenses 882,615 Sales salaries expense Office salaries expense 38,470 Delivery expense 26,170 Insurance expense 29,580 Miscellaneous selling expense 44,545 Income tax expense Total expenses Net Income

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Income Statement Multistep Sales Revenue 1426040 Cost of Goods Sol... View the full answer