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CHAPTER 4E4-5(MulTple-Step and Single-Step) ±wo accountants for the Frm of Elwes and Wright are arguing aboutthe merits of presenTng an income statement in a mulTple-step versus a single-step format.

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CHAPTER 4E4-5(MulTple-Step and Single-Step) ±wo accountants for the Frm of Elwes and Wright are arguing aboutthe merits of presenTng an income statement in a mulTple-step versus a single-step format. ±hediscussion involves the following 2014 informaTon related to P. Bride Company ($000 omi²ed).AdministraTve expense O³cers’ salaries$ 4,900DepreciaTon of o³ce furniture and equipment3,960Cost of goods sold60,570Rent revenue17,230Selling expenseDelivery expense2,690Sales commissions7,980DepreciaTon of sales equipment6,480Sales revenue96,500Income tax9,070Interest expense1,860InstrucTons(a) Prepare an income statement for the year 2014 using the mulTple-step form. Common shares out-standing for 2014 total 40,550 (000 omi²ed).(b) Prepare an income statement for the year 2014 using the single-step form.(c) Which one do youprefer? Discuss. CHAPTER 5E5-12(Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December31, 2014.DebitCreditCash$ 197,000Sales Revenue$ 8,100,000Debt Investments (trading) (at cost, $145,000)153,000Cost of Goods Sold4,800,000Debt Investments (long-term)299,000Equity Investments (long-term)277,000Notes Payable (short-term)90,000Accounts Payable455,000Selling Expenses2,000,000Investment Revenue63,000Land260,000Buildings1,040,000Dividends Payable136,000Accrued Liabilities96,000Accounts Receivable435,000Accumulated Depreciation—Buildings152,000Allowance for Doubtful Accounts25,000Administrative Expenses900,000Interest Expense211,000Inventory597,000Gain (extraordinary)80,000Notes Payable (long-term)900,000Equipment600,000Bonds Payable1,000,000Accumulated Depreciation—Equipment60,000Franchises160,000Common Stock ($5 par)1,000,000

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CHAPTER 4E4-5(MulTple-Step and Single-Step) ±wo accountants for the Frm of Elwes and Wright are arguing aboutthe merits of presenTng an income statement in a mulTple-step versus a single-step format. ±hediscussion involves the following 2014 informaTon related to P. Bride Company ($000 omi²ed).AdministraTve expense O³cers’ salaries$ 4,900DepreciaTon of o³ce furniture and equipment3,960Cost of goods sold60,570Rent revenue17,230Selling expenseDelivery expense2,690Sales commissions7,980DepreciaTon of sales equipment6,480Sales revenue96,500Income tax9,070Interest expense1,860InstrucTons(a) Prepare an income statement for the year 2014 using the mulTple-step form. Common shares out-standing for 2014 total 40,550 (000 omi²ed).(b) Prepare an income statement for the year 2014 using the single-step form.(c) Which one do youprefer? Discuss. CHAPTER 5E5-12(Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December31, 2014.DebitCreditCash$ 197,000Sales Revenue$ 8,100,000Debt Investments (trading) (at cost, $145,000)153,000Cost of Goods Sold4,800,000Debt Investments (long-term)299,000Equity Investments (long-term)277,000Notes Payable (short-term)90,000Accounts Payable455,000Selling Expenses2,000,000Investment Revenue63,000Land260,000Buildings1,040,000Dividends Payable136,000Accrued Liabilities96,000Accounts Receivable435,000Accumulated Depreciation—Buildings152,000Allowance for Doubtful Accounts25,000Administrative Expenses900,000Interest Expense211,000Inventory597,000Gain (extraordinary)80,000Notes Payable (long-term)900,000Equipment600,000Bonds Payable1,000,000Accumulated Depreciation—Equipment60,000Franchises160,000Common Stock ($5 par)1,000,000

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