Question
E4-6 (Multiple-Step and Extraordinary Items) The following balances were taken from the books of Maria Conchita Alonzo Corp. on December 31, 2014. Interest revenue $
E4-6 (Multiple-Step and Extraordinary Items) The following balances were taken from the books of
Maria Conchita Alonzo Corp. on December 31, 2014.
Interest revenue $ 86,000 Accumulated depreciationequipment $ 40,000
Cash 51,000 Accumulated depreciationbuildings 28,000
Sales revenue 1,380,000 Notes receivable 155,000
Accounts receivable 150,000 Selling expenses 194,000
Prepaid insurance 20,000 Accounts payable 170,000
Sales returns and allowances 150,000 Bonds payable 100,000
Allowance for doubtful accounts 7,000 Administrative and general expenses 97,000
Sales discounts 4 5,000 Accrued liabilities 32,000
Land 100,000 Interest expense 60,000
Equipment 200,000 Notes payable 100,000
Buildings 140,000 Loss from earthquake damage
Cost of goods sold 621,000 (extraordinary item) 150,000
Common stock 500,000
Retained earnings 21,000
Assume the total effective tax rate on all items is 34%.
Instructions
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year
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