|Purpose:||(L.O. 5) This exercise will allow you to practice preparing an income statement and to contrast the multiple-step format and the single-step format for this statement.|
The accountant for Steve Bradley Golf Products, Inc. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2014.
|Rental revenue||$ 29,000|
|Salaries and wages||151,700|
|Depreciation on store equipment||65,000|
|Sales returns and allowances||9,000|
|Cost of goods sold||446,000|
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.