Text Questions Chapter 4 & 18

Text Questions Chapter 4 & 18 - Text Questions Chapter...

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Unformatted text preview: Text Questions Chapter 4 & 18 Exercises E4-6, E4-16, E18-4 and E18-5 University of Phoenix ACC/421 Instructor: Lee Kroll By Scott Ward Exercise E4-6 (a) Prepare a multiple-step income statement. Multiple-Step Form Whitney Houston Shoe Co. Income Statement Year End of 2007 Net sales.............................................................................. $980,000 Cost of goods sold.............................................................. 496,000 Gross profit on sales........................................................... 484,000 Operating Expenses Selling expenses Wages and salaries.................................................. $114,800 Depreciation expense.............................................. 45,500 Materials and supplies............................................ 17,600 $177,900 Administrative expenses Wages and salaries.................................................. 135,900 Other admin. expenses............................................ 51,700 Depreciation Exp.................................................... 19,500 207,100 385,000 Income from operations...................................................... 99,000 Other Revenues and Gains Rental revenue.............................................................. 29,000 128,000 Other Expenses and Losses Interest expense............................................................ 18,000 Income before income tax.................................................. 110,000 Income tax.................................................................... 37,400 Net income.......................................................................... $ 72,600 Earnings per share ............................................................. $3.63 (b) Prepare a single-step income statement. Single-Step Form Whitney Houston Shoe Co. Income Statement Year End of 2007 Revenues Net sales...................................................................................................... $ 980,000 Rental revenue............................................................................................ 29,000 Total revenues....................................................................................... 1,009,000 Expenses Cost of goods sold...................................................................................... 496,000 Selling expenses.........................................................................................Selling expenses....
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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Text Questions Chapter 4 & 18 - Text Questions Chapter...

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