Included in the December 31, 2007 adjusted trial balance of the Gold Company are the following accounts:

Question:

Cost of goods sold ............$101,000

Sales .................. 200,000

General and administrative expenses .... 20,000

Loss from strike (pretax) ........... 9,000

Sales returns and allowances ........ 5,000

Selling expenses ............ $28,000

Interest revenue ............. 4,000

Extraordinary loss (pretax) ........ 17,000

Additional data:

1. Seven thousand shares of common stock have been outstanding the entire year.

2. The income tax rate is 30% on all items of income.

Required

1. Prepare a 2007 multiple-step income statement.

2. Prepare a 2007 single-step income statement.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...