The following balances were taken from the books of the Big Track Trucking Company Limited on December 31, 2014:

Assume the total effective tax rate on all items is 25%.
Instructions
Prepare a multiple-step income statement showing expenses by function. Assume that 150,000 common shares were outstanding during the year. Include calculation of EPS.

Transcribed Image Text:

Interest income Cash Sales revenue Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Building Cost of goods sold $ 86,000 51,000 1,380,000 150,000 20,000 150,000 7,000 45,000 100,000 200,000 140,000 621,000 Accumulated depreciation-equipment Accumulated depreciation-buildings Notes receivable Selling expenses Accounts payable Bonds payable Administrative expenses Accrued liabilities Interest expense Notes payable Loss-other (due to storm damage) Depreciation expense 40,000 28,000 155,000 194,000 170,000 100,000 97,000 32,000 60,000 100,000 150,000 60,000