Multiple-Step and Single-Step Income Statements

The following items were derived from Gold Company's December 31 adjusted trial balance:

Cost of goods sold	$103,000		Loss from strike (pretax)	$9,000
Sales	190,000		Selling expenses	28,000
General and administrative expenses	20,000		Interest revenue	4,000

Additional data:

1. Seven thousand shares of common stock have been outstanding the entire year.
2. The income tax rate is 30% on all items of income.

Required:

1. Prepare a multiple-step income statement. Round earnings per share computations to two decimal places.

GOLD COMPANY
Income Statement (Multi-Step)
For Year Ended December 31, Current Year
Sales		$fill in the blank fa1359f1c03007b_2
Cost of goods sold		fill in the blank fa1359f1c03007b_4
Gross profit		$fill in the blank fa1359f1c03007b_6
Operating expenses
Selling expenses	$fill in the blank fa1359f1c03007b_8
General and administrative expenses	fill in the blank fa1359f1c03007b_10
Total operating expenses		fill in the blank fa1359f1c03007b_11
Operating income		$fill in the blank fa1359f1c03007b_13
Other items
Interest revenue	$fill in the blank fa1359f1c03007b_15
Loss from strike	fill in the blank fa1359f1c03007b_17	fill in the blank fa1359f1c03007b_18
Income before income tax		$fill in the blank fa1359f1c03007b_20
Income tax expense		fill in the blank fa1359f1c03007b_22
Net income		$fill in the blank fa1359f1c03007b_24
Components of Income		EPS
Net income		$fill in the blank fa1359f1c03007b_26

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2. Prepare a single-step income statement. Round earnings per share computations to two decimal places.

GOLD COMPANY
Income Statement (Single Step)
For Year Ended December 31, Current Year
Revenues
Sales (net)	$fill in the blank 9ae53afc9fb904b_2
Interest revenue	fill in the blank 9ae53afc9fb904b_4
Total revenues		$fill in the blank 9ae53afc9fb904b_5
Expenses
Cost of goods sold	$fill in the blank 9ae53afc9fb904b_7
Selling expenses	fill in the blank 9ae53afc9fb904b_9
General and administrative expenses	fill in the blank 9ae53afc9fb904b_11
Loss from strike	fill in the blank 9ae53afc9fb904b_13
Income tax expense	fill in the blank 9ae53afc9fb904b_15
Total expenses		fill in the blank 9ae53afc9fb904b_16
Net income		$fill in the blank 9ae53afc9fb904b_18
Components of Income		EPS
Net income		$fill in the blank 9ae53afc9fb904b_20

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3. If Gold Company used IFRS, its income statement: Could classify expenses by their nature rather than their function.