Prepare a multiple-step income statement for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Howell Corporation has 50,000 shares of common stock outstanding and has a 30% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.

Angelique Huntley Intermediate Accounting I Midterm Problem #2 a. Depreciation Expense---Equipment (840,000-0)/15 $56,000 Accumulated Depreciation---Equipment b. Interest Expense $56,000 $15,000 Interest Payable c. Prepaid Insurance $15,000 $10,000 Insurance Expense (30,000-20,000) d. Rent Expense (150,000/6) $10,000 $25,000 Prepaid Rent e. Salaries and Wages Expense Salaries and Wages Payable $25,000 $22,000 $22,000 Angelique Huntley Intermediate Accounting I Midterm Problem #3