ACC 421 Week 2 Assignment Exercises

Business - Accounting

E4-6 (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

(a) Prepare a...