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    accoutninghelp's Avatar
    accoutninghelp Posts: 1, Reputation: 1
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    #1

    Jun 14, 2009, 02:15 PM
    Income Statement
    Exercise: "W3-1, Multiple-step and Single-step Income
    Statements (Chapter 4)"


    The following information has been complied from the records of Faith Hill Company as a basis for an income statement for the year ended December 31, 2008.



    Rental revenue $36,000
    Interest on notes payable 15,000
    Market appreciation on land above cost 31,000
    Wages and salaries - sales 111,300
    Materials and supplies - sales 15,300
    Income tax 35,700
    Wages and salaries - administrative 127,600
    Other administrative expenses 48,700
    Cost of goods sold 423,000
    Net sales 875,000
    Depreciation on plant assets (70% selling, 30% administrative) 65,000
    Cash dividends declared 16,000


    Instructions:
    (a) Prepare an income statement for the year 2008 using the multiple-step form. Common shares
    Outstanding for 2008 total 20,000

    FAITH HILL COMPANY
    Multi-Step Income Statement
    For the Year Ended December 31, 2008

    Title Amount
    Title Amount
    Title Formula

    Operating Expenses
    Title
    Account Title Amount
    Account Title Amount
    Account Title Amount Formula
    Title
    Account Title Amount
    Account Title Amount
    Account Title Amount Formula Formula
    Title Formula

    Other Revenues and Gains
    Account Title Amount
    Formula
    Other Expenses and Losses
    Account Title Amount

    Income before taxes Formula
    Account Title Amount
    Net income Formula

    Earnings per share Formula

    (b) Prepare an income statement for the year 2008 using the single-step form. Common shares
    Outstanding for 2008 total 20,000 (000 omitted).

    FAITH HILL COMPANY
    Single-Step Income Statement
    For the Year Ended December 31, 2008

    Revenues
    Net sales Amount
    Title Amount
    Total revenues Formula

    Expenses
    Title Amount
    Title Amount
    Title Amount
    Title Amount
    Total expenses Formula

    Income before taxes Formula
    Title Amount
    Net income Formula

    Earnings per share Formula

    (c) Which one do you prefer? Discuss.
    Single-step:




    Multiple-step:
    ValerieDonovant's Avatar
    ValerieDonovant Posts: 1, Reputation: 1
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    #2

    Oct 1, 2009, 07:35 PM
    What is the formula fro cost of goods sold?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #3

    Oct 1, 2009, 10:00 PM
    Quote Originally Posted by ValerieDonovant View Post
    what is the formula fro cost of goods sold?

    Cost of goods sold:
    Beginning inventory
    + Net purchases
    = Cost of goods available for sale
    - Ending Inventory
    = Cost of goods sold

    As regards your first post, can you please submit your work so that we can guids you better?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #4

    Oct 3, 2009, 02:57 AM

    Valerie, you should start your own thread for your own question instead of tagging onto someone else's.

    accoutninghelp, please see the guidelines for posting homework problems:
    Ask Me Help Desk - Announcements in Forum : Homework Help
    Lot of stuff there to expect someone else to do. Especially #3. Are we supposed to know which you prefer?
    neenie21's Avatar
    neenie21 Posts: 5, Reputation: 1
    New Member
     
    #5

    Mar 8, 2010, 11:28 PM
    Exercise: "W3-1, Multiple-step and Single-step Income
    Statements (Chapter 4)"


    The following information has been complied from the records of Faith Hill Company as a basis for an income statement for the year ended December 31, 2008.
    DDPASCOL's Avatar
    DDPASCOL Posts: 1, Reputation: 1
    New Member
     
    #6

    Apr 28, 2010, 11:51 AM

    Revenue

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