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The following information is available for Wright Auto Supply at December 31, 2019. Cost of goods sold $292,000 Rent expense $ 21,000 Depreciation expense 31,250
The following information is available for Wright Auto Supply at December 31, 2019.
Cost of goods sold | $292,000 | Rent expense | $ 21,000 |
Depreciation expense | 31,250 | Salaries (administrative) | 33,800 |
Income taxes expense | 32,520 | Sales revenue | 585,600 |
Interest expense | 2,400 | Wages expense (salespeople) | 96,750 |
Required:
1. | Prepare a single-step income statement for the year ended December 31, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | Prepare a multiple-step income statement for the year ended December 31, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. | Conceptual Connection: Comment on the differences between the single-step and the multiple-step income statements.
3. Conceptual Connection: Comment on the differences between the single-step and the multiple-step income statements by answering "true or false" to the following:
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