Q1) The accountant of Whitney Houston Shoe Co. has compiled following information from company's records as a basis for income statement for year ended December 31, 2007.
|Interest on notes payable
|Market appreciation on land above cost
|Wages and salaries-sales
|Materials and supplies-sales
|Wages and salaries-administrative
|Other administrative expenses
|Cost of goods sold
|Depreciation on plant assets (70% selling, 30% administrative)
|Cash dividends declared
There were 20,000 shares of common stock outstanding during the year.
(a) Create a multiple-step income statement.
(b) Create a single-step income statement.
(c) What format do you prefer? describe.