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, 2019.
Rent revenue....................................................................£ 29,000
Interest expense...................................................................18,000
Unrealized gain on non-trading equity securities, net of tax...............31,000
Selling expenses.................................................................140,000
Income tax........................................................................30,600
Administrative expenses.......................................................181,000
Cost of goods sold..............................................................516,000
Net sales..........................................................................980,000
Cash dividends declared.........................................................16,000
Loss on sale of plant assets.......................................................15,000
There were 20,000 ordinary shares outstanding during the year.
Instructions
a. Prepare a comprehensive income statement using the combined statement approach.
b. Prepare a comprehensive income statement using the two statement approach.
c. Which format do you prefer? Discuss.