Question - Multiple-step and Single-step

The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2010.

Rental revenue $ 29,000

Interest expense 18,000

Market appreciation on land above cost 31,000

Wages and salaries-sales 114,800

Materials and supplies-sales 17,600

Income tax 30,600

Wages and salaries-administrative 135,900

Other administrative expenses 51,700

Cost of goods sold 516,000

Net sales 980,000

Depreciation on plant assets (70% selling, 30% administrative) 65,000

Cash dividends declared 16,000

There were 20,000 shares of common stock outstanding during the year.

Instructions -

Prepare a multiple-step income statement.

Prepare a single-step income statement.

Which format do you prefer? Discuss.