B D E F G H E4-5 (Multiple-Step and Single-Step) Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following information related to P. Bride Company (S000 $4,900 3.960 60,570 17,230 Administrative expenses Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expenses Transportation-out Sales commissions Depreciation of sales equipment Sales Income tax Interest expense 2,690 7.980 6,480 96,500 9.070 1.860 Instructions: (a) Prepare an income statement for the year using the multiple-step form. Common shares outstanding for 2014 total 81,100000 omitted) P. BRIDE COMPANY Multi-Step Income Statement For the Year Ended December 31, 20XX (In thousands, except earnings per share) M11 B G H DIE For the Year Ended December 31, 20XX (In thousands, except earnings per share) Title Title Amount Amount Formula Title Operating Expenses Title Account Title Account Title Account Title Amount Amount Amount Formula 4 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 58 Title Account Title Account Title Title Amount Amount Formula Formula Formula Other Revenues and Gains Account Title Amount Formula Other Expenses and Losses Account Title Amount Income before taxes Account Title Net income Formula Amount Formula M11 DE F G B Account Title Net income H Amount Formula Title Formula A 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 (b) Prepare an income statement for the year using the single-step form. Common shares outstanding for 2014 total 81,100 (000 omitted) P. BRIDE COMPANY Single Step Income Statement For the Year Ended December 31, 20XX (In thousands, except earnings per share) Revenues Net sales Title Total revenues Amount Amount Formula Expenses Title Title Title Title Total expenses Amount Amount Amount Amount 75 76 77 78 79 Formula Income before takes Title Instruction Formula Amount E4.5 M11 B E F. G H Amount Amount Amount Amount Title Formula Formula Amount Formula A B D 72 Expenses 73 Title 74 Title 75 Title 76 77 Total expenses 78 79 Income before taxes 80 Title 81 Net income 82 83 Title 84 85 (C) Which one do you prefer? Discuss 86 Single-step 87 88 89 90 91 Multiple-step 92 93 94 95 96 97 98 Formula E4-5