posted a question
(Multiple-step and Single-step)

The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2010.

Rental revenue $29,000
Interest expense 18,000
Market appreciation on land above cost 31,000
Wages and salaries-sales 114,800
Materials and supplies-sales 17,600
Income tax 30,600
Wages and salaries-administrative 135,900
Other administrative expenses 51,700
Cost of goods sold 516,000
Net sales 980,000
Depreciation on plant assets (70% selling, 30% administrative) 65,000
Dividends declared 16,000


There were 20,000 shares of common stock outstanding during the year.

(a) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 5.25. For multiple entries list from largest to smallest amounts, e.g. 10, 5, 1. Enter all amounts as positive amounts and subtract where necessary.)



WEATHERSPOON SHOE CO.
Income Statement
For the Year Ended December 31, 2010
Income taxMaterials and suppliesCost of goods soldDepreciation expenseWages and salariesRental revenueNet salesInterest expenseOther admin. expenses $
Depreciation expenseCost of goods soldRental revenueNet salesInterest expenseIncome taxWages and salariesMaterials and suppliesOther admin. expenses

Gross profit

Operating Expenses
Selling Expenses
Wages and salariesNet salesCost of goods soldMaterials and suppliesDepreciation expenseOther admin. expensesRental revenueInterest expenseIncome tax $
Other admin. expensesWages and salariesIncome taxInterest expenseNet salesDepreciation expenseCost of goods soldMaterials and suppliesRental revenue
Cost of goods soldMaterials and suppliesWages and salariesNet salesRental revenueOther admin. expensesDepreciation expenseInterest expenseIncome tax

Administrative expenses
Wages and salariesNet salesCost of goods soldIncome taxDepreciation expenseMaterials and suppliesOther admin. expensesRental revenueInterest expense
Rental revenueInterest expenseIncome taxCost of goods soldDepreciation expenseOther admin. expensesWages and salariesNet salesMaterials and supplies
Depreciation expenseMaterials and suppliesOther admin. expensesInterest expenseNet salesWages and salariesRental revenueIncome taxCost of goods sold



Income from operations

Other Revenues and Gains
Interest expenseRental revenueIncome taxCost of goods soldWages and salariesNet salesMaterials and suppliesOther admin. expenses



Other Expenses and Losses
Net salesIncome taxCost of goods soldWages and salariesMaterials and suppliesOther admin. expensesRental revenueInterest expense

Income before taxes
Other admin. expensesIncome taxCost of goods soldWages and salariesRental revenueInterest expenseNet salesMaterials and supplies

Net income $


Earnings per share $



(b) Prepare a single-step income statement. (Round earnings per share to 2 decimal places, e.g. 5.25. For multiple entries list from largest to smallest amounts, e.g. 10, 5, 1. Enter all amounts as positive amounts and subtract where necessary.)



WEATHERSPOON SHOE CO.
Income Statement
For the Year Ended December 31, 2010

Revenues
Selling expensesIncome taxesAdministrative expensesNet salesCost of goods soldRental revenueInterest expense $
Income taxesSelling expensesInterest expenseAdministrative expensesRental revenueNet salesCost of goods sold

Total revenues


Expenses
Net salesRental revenueCost of goods soldSelling expensesAdministrative expensesInterest expenseIncome taxes
Income taxesAdministrative expensesNet salesRental revenueCost of goods soldInterest expenseSelling expenses
Interest expenseRental revenueIncome taxesCost of goods soldSelling expensesAdministrative expensesNet sales
Cost of goods soldRental revenueAdministrative expensesSelling expensesInterest expenseIncome taxesNet sales

Total expenses

Income before taxes
Income taxesInterest expenseNet salesRental revenueAdministrative expensesCost of goods soldSelling expenses

Net income $


Earnings per share $