The following data pertain to a corporation: net sales, $202,500; cost of goods sold, $110,000; selling expenses,

Question:

The following data pertain to a corporation: net sales, $202,500; cost of goods sold, $110,000; selling expenses, $45,000; general and administrative expenses, $30,000; income taxes expense, $3,750; interest expense, $2,000; interest income, $1,500; and common stock outstanding, 25,000 shares.

1. Prepare a single-step income statement.

2. Prepare a multistep 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...