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

Account Debit Credit

101 Cash $ 7,600

119 Merchandise inventory 15,800

125 Supplies 9,600

128 Prepaid insurance 3,600

165 Store equipment 50,600

166 Accumulated depreciation, store equipment $ 46,400

167 Office equipment 68,600

168 Accumulated depreciation, office equipment 33,800

201 Accounts payable 15,600

301 Jonah Bell, capital 26,760

302 Jonah Bell, withdrawals 40,600

413 Sales 287,800

415 Sales discounts 1,600

505 Cost of goods sold 74,400

612 Depreciation expense, store equipment 4,800

613 Depreciation expense, office equipment 3,400

622 Sales salaries expense 45,600

623 Office salaries expense 31,600

637 Insurance expense, store 1,600

638 Insurance expense, office 1,400

640 Rent expense, office space 12,600

641 Rent expense, selling space 16,600

651 Office supplies expense 1,160

652 Store supplies expense 2,000

655 Advertising expense 17,200

Totals $ 410,360 $ 410,360

Required:

1. Prepare a classified multiple-step income statement that would be used by the businesss owner.

2. Prepare a multiple-step income statement that would be used by external users.

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

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?

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