Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 information related to P. Bride Company ($000 omitted).

Administrative expense

Officers salaries

$4,900

Depreciation of office furniture and equipment

3,960

Cost of goods sold

60,570

Rent revenue

17,230

Selling expense

Delivery expense

2,690

Sales commissions

7,980

Depreciation of sales equipment

6,480

Sales revenue

96,500

Income tax

9,070

Interest expense

1,860

Instructions

(a)

Prepare an income statement for the year 2017 using the multiple-step form. Common shares outstanding for 2017 total 40,550 (000 omitted).

P. BRIDE COMPANY

Income Statement

For the Year Ended December 31, 2017

(In thousands, except earnings per share)

Operating Expenses

Other Revenues and Gains

Other Expenses and Losses

(b)

Prepare an income statement for the year 2017 using the single-step form.

P. BRIDE COMPANY

Income Statement

For the Year Ended December 31, 2017

(In thousands, except earnings per share)

Revenues

Expenses

Income from operations

Other Revenues and Gains

Interest revenue

Other Expenses and Losses

Loss due to volcano eruption

Impairment loss - building

Income before income tax

Income tax (income before income tax X .30)

Net income

Per share of common stock:

Net income (net income 5,000,000)

Income from operations
	Other Revenues and Gains
	Interest revenue
	Other Expenses and Losses
	Loss due to volcano eruption
	Impairment loss - building
	Income before income tax
	Income tax (income before income tax X .30)
	Net income
	Per share of common stock:
	Net income (net income 5,000,000)

		insert numbers in yellow cells
	(a) ROLAND CARLSON INC.
	Income Statement
	For the Year Ended December 31, 2017
	Revenues
	Sales revenue
	Rent revenue
	Total revenues
	Expenses
	Cost of goods sold
	Selling expenses
	Administrative expenses
	Total expenses
Income from operations
Other revenues and gains
Gain on sale of equipment
Other expenses and losses
Inventory loss
Income from continuing operations before
income tax
Income tax
Income from continuing operations
Discontinued operations
Loss on discontinued operations
Less: Applicable income tax reduction
Net income
Per share of common stock:
Income from continuing operations (income from continuing operations 100,000)
Loss on discontinued operations, net of tax
Net income (Net income 100,000)
c)
	Retained Earnings Statement
	For the Year Ended December 31, 2017
	Retained earnings, January 1, 2017
	2017 Net income
	Dividends declared
	Retained earnings, December 31, 2017

BE4-5 (02,3,4) Stacy Corporation had income frorn operations of $7,200,000. In addition, it suffered an unusual and infre- quent pretax loss of $770,000 from a volcano eruption, interest revenue of $17,000, and a write-down on buildings of $53,000. The corporation's tax rate is 30 % Prepare a partial income statement for Stacy beginning with Income from o erations. The corpora- tion had 5,000,000 shares of common stock outstanding during 2017