Exercise 4-05 a-b

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 2020 information related to Marigold Company ($000 omitted).

Administrative expense
Officers' salaries		$5,150
Depreciation of office furniture and equipment		4,210
Cost of goods sold		60,820
Rent revenue		17,480
Selling expense
Delivery expense		2,940
Sales commissions		8,230
Depreciation of sales equipment		6,730
Sales revenue		96,750
Income tax		9,320
Interest expense		2,110

Common shares outstanding for 2020 total 36,800 (000 omitted).

Prepare an income statement for the year 2020 using the single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)

MARIGOLD COMPANY Income Statement choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 (In thousands, except earnings per share)
select an opening name for section one DividendsEarnings Per ShareExpensesGross Profit / (Loss)Income Before Income TaxIncome From OperationsNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item		$enter a dollar amount
enter an income statement item		enter a dollar amount
select a closing name for section one Dividends Earnings Per Share Expenses Gross Profit / (Loss) Income Before Income Tax Income From Operations Net Income / (Loss) Operating Expenses Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues		enter a total amount for section one
select an opening name for section two DividendsEarnings Per ShareExpensesGross Profit / (Loss)Income Before Income TaxIncome From OperationsNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item		enter a dollar amount
enter an income statement item		enter a dollar amount
enter an income statement item		enter a dollar amount
enter an income statement item		enter a dollar amount
select a closing name for section two Dividends Earnings Per Share Expenses Gross Profit / (Loss) Income Before Income Tax Income From Operations Net Income / (Loss) Operating Expenses Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues		enter a total amount for section two
select a summarizing line for the first part DividendsEarnings Per ShareExpensesGross Profit / (Loss)Income Before Income TaxIncome From OperationsNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		enter a total amount for the first part
enter an income statement item		enter a dollar amount
select a closing name for this statement Dividends Earnings Per Share Expenses Gross Profit / (Loss) Income Before Income Tax Income From Operations Net Income / (Loss) Operating Expenses Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues		$enter a total net income or loss amount
select an income statement item DividendsEarnings Per ShareExpensesGross Profit / (Loss)Income Before Income TaxIncome From OperationsNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$enter a dollar amount rounded to 2 decimal places

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