Income Statement Format

The following information from Buchanan Companys current operations is available:

Administrative expenses	$73,000
Cost of goods sold	470,000
Sales revenue	772,000
Selling expenses	87,000
Interest expense	10,000
Loss from operations of discontinued segment	60,000
Gain on disposal of discontinued segment	40,000
Income taxes:
Amount applicable to ordinary operations	40,000
Reduction applicable to loss from operations of discontinued segment	14,000
Amount applicable to gain on disposal of discontinued segment	8,000

Required a. Prepare a multiple-step income statement. (Disregard earnings per share.) b. Prepare a single-step income statement. (Disregard earnings per share.) Note: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

BUCHANAN COMPANY Multiple-Step Income Statement For Year Ended
Sales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
Selling Expenses	Answer
Administrative Expenses	Answer	Answer
Operating Income		Answer
Interest Expense		Answer
Income from Continuing Operations before Taxes		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer
Gain on disposal of discontinued segment	Answer	Answer
Net Income		Answer

Note: Do not enter any answers as negative numbers unless it's indicated with an asterisk *.

BUCHANAN COMPANY Single-Step Income Statement For Year Ended
Sales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue
Cost of Goods Sold	Answer
Selling Expenses	Answer
Administrative Expenses	Answer
Interest Expense	Answer
Income Tax Expense	Answer	Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue		Answer
AnswerCost of Goods SoldDiscontinued OperationsExpensesGross Profit on SalesIncome from Continuing OperationsIncome Tax ExpenseNet IncomeSales Revenue
Loss from operations of discontinued segment	Answer
Gain on disposal of discontinued segment	Answer	Answer
Net Income		Answer

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