E5-10 Prepare multiple-step and single-step income statement

In its income statement for the year ended December 31, 2017, Anhad Company reported the following
condensed data.

Operating E $725,000 Interest revenue $28,000

Cost of good 1,289,000 Loss on disposal of plant 17,000
Interest exp 70,000 Net sales 2,200,000

Instructions:
(a) Prepare a multiple-step income statement.
(b) Prepare a single-step income statement.

A. Multiple-step Income Statement

ANHAD COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales
Net Sales 2,200,000
Cost of goods sold 1,289,000
Gross Profit 911,000
Operating Expense
Total operating expense 725,000
Income from operation 186,000
Other revenues and gains
Interst revenue 28,000

Other expenses and losses

Interest expense 70,000
Loss on disponsal of plant assets 17,000 87,000

Net Income 127,000

y reported the following

B. Single-step Income Statement

ANHAD COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Net sales 2,200,000
Interest revenue 28,000
Total revenues 2,228,000
Expenses
Cost of goods sold 1,289,000
Operating expense 725,000
Interest expense 70,000
Loss on disposal of plant assets 17,000
Total expenses 2,101,000

Net income 127,000