The accountant of Weatherspoon Shoe Co. has compiled the followinginformation from the company’s records as a basis for an income statement for the year ended December 31, 2010.Rental revenue $ 29,000Interest expense 18,000Market appreciation on land above cost 31,000Wages and salaries—sales 114,800Materials and supplies—sales 17,600Income tax 30,600Wages and salaries—administrative 135,900Other administrative expenses 51,700Cost of goods sold 516,000Net sales 980,000Depreciation on plant assets (70% selling, 30% administrative) 65,000Cash dividends declared 16,000There were 20,000 shares of common stock outstanding during the year.Instructions(a) Prepare a multiple-step income statement.(b) Prepare a single-step income statement.(c) Which format do you prefer? Discuss.
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