Preparing a Single-Step and a Multiple-Step Income Statement Lewis Company's records show the following information at December 31, 2020, its annual year-end. Sales revenue $190,000 Interest expense Service revenue Gain on sale of short-term investments Selling expense General and administrative expense Depreciation expense (administrative) $8,000 70,000 Earthquake loss on building 30,000 22,000 Loss on sale of warehouse* 6,000 36,000 Cost of goods sold 90,000 24,000 Common stock shares outstanding 10,000 shares 12,000 Income tax rate 25% * Loss on sale of warehouse is considered nonoperating. Required a. Prepare a single-step income statement (including earnings per share). b. Prepare a multiple-step income statement (including earnings per share). Enter revenues and gains and expenses and losses in the order of the largest dollar amount to the smallest dollar amount. Do not use negative signs with any of your answers. Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. Single-step Multiple-step a. Prepare a single-step income statement (including earnings per share). Lewis Company Income Statement For the Year Ended December 31, 2020 Revenues and gains Sales revenue $ 190,000 Service revenue = 70,000 Gain on sale of short-term investments = 22,000 Total revenues and gains 282,000 Expenses and losses Cost of goods sold 90,000 General and administrative expenses = 24,000 x Selling expense = 36,000 Other expenses and losses 10 x Earthquake loss on building = 30,000 Loss on sale of warehouse Interest expense Total expenses and losses Income before income taxes = 10 10 10 X 110 X Income tax expense Net income Earnings per share 10 $ 10 $ 10 Single-step Multiple-step b. Prepare a multiple-step income statement (including earnings per share). Lewis Company Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Selling expenses General and administrative expenses Total operating expenses $ 190,000 90,000 100,000 36,000 24,000 x 60,000 x 200,000 x Operating income Expenses and losses Interest expense Depreciation expense Other expenses and losses Earthquake loss on building Loss on sale of warehouse Cost of goods sold x 12,000 x 8,000 x 20,000 x 30,000 = 6,000 x 90,000 x 96,000 x Income before income taxes = 10 Income tax expense 10 x Net income $ 10 x Earnings per share $ 10 x Check