set up a multiple-step income statement;

Based upon :  100,000 shares of common stock were outstanding during the year.

 

Interest revenue was  $120,400 *

Accumulated depreciation—equip.  $56,000 

Cash $71,400 

Accumulated depreciation: building $39,200 

Sales $1,932,000 *

Notes receivable $217,000 

Accts receivable $210,000 

Selling exp. $271,600 *

 Prepaid insurance $28,000 

Accts payable $238,000 

Sales returns & allowances $210,000 *

Bonds payable $140,000 

Allowance for doubtful administrative and general accounts $9,800 expenses $135,800 

Allowance for doubtful accts $9,800?

Administrative & General Expenses $135,800?

Sales discounts $63,000 *

Accrued liabilities $44,800 

Land $140,000 

Interest exp. $84,000 

Equipment $280,000 

Notes payable $140,000 

Building $196,000 

Loss from earthquake damage $210,000 

Cost of goods sold $869,400 *

Common stock $700,000 

Retained earnings $29,400

 

Let's say the tax rate on all items would be 34%.