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ZZZ Company sells beds and linens. There are 100,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed
ZZZ Company sells beds and linens. There are 100,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, 2015 Debit S 42,000 18,000 65,000 50,000 Credit Cash Accounts receivable Inventory Operational assets S 21,000 30,000 90,000 11,600 182,000 Liabilities Common stock Retained earnings, January 1, 2015 Sales revenue Sales returns and allowances Cost of goods sold Selling expense Administrative expense Interest expense Extraordinary loss Income t 7,000 98,000 17,000 18,000 2,000 8,000 9,600 tax expense (30% tax rate) Totals 5334600 Required: Prepare a multiple-step income statement. Hint: the extraordinary item needs to be shown below the income from operations and shown net of taxes. There is an example in the book but you might want to search outside of your textbook to find another example
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