Required:

Prepare a classified multiple$-$step income statement that would be used by the business's owner. Prepare a multiple$-$step income statement that would be used by external users.

$\backslash$table$[[$BELL SERVICING,,$],[$For Year Ended December $31,2023,,],[,,],[,,],[,,],[$Operating expenses:,,$],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,]]$

Prepare a single$-$step income statement that would be provided to decision makers outside the company.

$\backslash$table$[[$BELL SERVICING,,$],[$Income Statement,,$],[$For Year Ended December $31,2023,,],[$Revenues:$,,],[,,],[$Expenses:$,,],[,,],[,,],[,,],[$Total expenses,,$]]$ Analysis Component:

If you were a decision maker external to Bell Servicing, which Income statement format would you prefer and why, If you had a choice?

Format of income statement

Which Income statement format$($s$)$ could you expect as an external user?

Format of income statementThe following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December $31,2023$: