Exercise 4 5 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 2017 information related to Bonita Company ($000 omitted) Administrative expense Officers' salaries $4,990 Depreciation of office furniture and equipment 4,050 Cost of goods sold 60,660 Rent revenue 17,320 Selling expense Delivery expense 2,780 Sales commissions 8,070 Depreciation of sales equipment 6,570 Sales revenue 96,590 Income tax 9,160 Interest expense 1,950 Common shares outstanding for 2017 total40,550(000 omitted) Prepare an income statement for the year 2017 using the multiple step form (Round earnings per share to 2 decimal places, e g 1 48 ) BONITA COMPANY Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 (In thousands, except earnings per share) $ ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share $ ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share $ ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsEarnings Per ShareSelling Expenses ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Expenses and LossesEarnings Per Share ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses $ Gross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare an income statement for the year 2017 using the single step form (Round earnings per share to 2 decimal places, e g 1 48 ) BONITACOMPANY Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 (In thousands, except earnings per share) DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ DividendsEarnings Per ShareExpensesGross Profit (Loss)Income Before Income TaxIncome From OperationsNet Income (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $

Question

Exercise 4 5 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 2017 information related to Bonita Company ($000 omitted)  Administrative expense Officers' salaries $4,990 Depreciation of office furniture and equipment 4,050 Cost of goods sold 60,660 Rent revenue 17,320 Selling expense Delivery expense 2,780 Sales commissions 8,070 Depreciation of sales equipment 6,570 Sales revenue 96,590 Income tax 9,160 Interest expense 1,950 Common shares outstanding for 2017 total40,550(000 omitted)  Prepare an income statement for the year 2017 using the multiple step form (Round earnings per share to 2 decimal places, e g  1 48 ) BONITA COMPANY Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 (In thousands, except earnings per share) $ ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share $ ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share $ ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesTotal Selling ExpensesAdministrative ExpensesTotal Administrative ExpensesOther Revenues and GainsEarnings Per ShareSelling Expenses ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Expenses and LossesEarnings Per Share ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses ExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and Losses $ Gross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRevenuesTotal ExpensesTotal RevenuesSelling ExpensesAdministrative ExpensesTotal Selling ExpensesTotal Administrative ExpensesOther Revenues and GainsOther Expenses and LossesEarnings Per Share $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare an income statement for the year 2017 using the single step form (Round earnings per share to 2 decimal places, e g  1 48 ) BONITACOMPANY Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017 (In thousands, except earnings per share) DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ DividendsEarnings Per ShareExpensesGross Profit   (Loss)Income Before Income TaxIncome From OperationsNet Income   (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $

Accepted Answer

The Answer is in the image, click to view ...

Question

Exercise 4-5 Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question